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They arrive with new information. Tourism flows and production efficiency in the European regions

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  • Marrocu, Emanuela
  • Paci, Raffaele

Abstract

Firms productivity is crucially influenced by knowledge spillovers generated either by other firms located nearby or by direct contacts with consumers or by foreign demand in the case of traded products. In this paper we propose a new channel of efficiency-enhancing knowledge diffusion, which can be exploited by local firms to extract relevant information on consumer preferences: direct contacts with tourism flows. Tourists have the peculiar feature of being external consumers, who directly arrive to the destination region and this represents a remarkable advantage for the local enterprises, as the latter can exploit the new information and increase the overall efficiency level of the local economy. More specifically, we examine, within a spatial estimation framework, tourism flows as determinants of regional total factor productivity, controlling also for other intangible factors (such as human, social and technological capital) and for the degree of accessibility. We apply the analysis to a sample of 199 European regions belonging to the EU15 member countries, plus Switzerland and Norway. The empirical results show that tourism flows enhance regional efficiency and that a positive role is also played by intangible assets, infrastructures and spatial spillovers.

Suggested Citation

  • Marrocu, Emanuela & Paci, Raffaele, 2011. "They arrive with new information. Tourism flows and production efficiency in the European regions," Tourism Management, Elsevier, vol. 32(4), pages 750-758.
  • Handle: RePEc:eee:touman:v:32:y:2011:i:4:p:750-758
    DOI: 10.1016/j.tourman.2010.06.010
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    7. Daniel Felsenstein & Michael Beenstock & Ziv Rubin, 2015. "Visa Waivers, Multilateral Resistance and International Tourism: Some Evidence from Israel," ERSA conference papers ersa15p187, European Regional Science Association.
    8. Santana-Gallego, María & Ledesma-Rodríguez, Francisco J. & Pérez-Rodríguez, Jorge V., 2016. "International trade and tourism flows: An extension of the gravity model," Economic Modelling, Elsevier, vol. 52(PB), pages 1026-1033.
    9. Raffaele Paci & Emanuela Marrocu, 2014. "Tourism and regional growth in Europe," Papers in Regional Science, Wiley Blackwell, vol. 93, pages 25-50, November.
    10. Li, Hengyun & Chen, Jason Li & Li, Gang & Goh, Carey, 2016. "Tourism and regional income inequality: Evidence from China," Annals of Tourism Research, Elsevier, vol. 58(C), pages 81-99.
    11. Yan-Teng Tan & Pei-Tha Gan & Mohd Yahya Mohd Hussin & Norimah Ramli, 2019. "The Relationship Between Human Development, Tourism and Economic Growth: Evidence From Malaysia," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(5), pages 96-103, December.
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    13. Carvalho Pedro & Márquez Miguel A. & Díaz Montserrat, 2016. "Do neighbouring countries encourage the demand of international business tourism?," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 7(3), pages 156-167, December.
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    16. , Aisdl, 2020. "Employing Value Chain Theory To Address COVID-19 Outbreak In Tourism Management: A Resilience and Stakeholder View," OSF Preprints tmzvf, Center for Open Science.
    17. Biancone Paolo & Secinaro Silvana & Brescia Valerio & Calandra Davide, 2020. "Employing Value Chain Theory To Address COVID-19 Outbreak In Tourism Management: A Resilience and Stakeholder View," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 11(3), pages 39-64, December.
    18. Ljubica Knezevic Cvelbar & Mojca Mayr & Damjan Vavpotic, 2018. "Geographical mapping of visitor flow in tourism," Tourism Economics, , vol. 24(6), pages 701-719, September.

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    More about this item

    Keywords

    Tourism; Information; Customer knowledge; Total factor productivity; European regions;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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