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Economic Benefits Associated With The Visa Waiver Program €“ A Difference-Indifference Approach

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  • Xiaochu Hu

Abstract

This study evaluates the economic benefit that the Visa Waiver Program, VWP, brings to the United States, including decreased spending on administration and increased tourism. To capture the net effect of VWP due to increased tourism, this study conducts a semi-experimental evaluation by introducing a control group – it pairs a VWP member country with a non-member country. The results show a net increase of 3-4.5 tourism/business trips per thousand population for a VWP participating country. It concludes that in 2010, because the VWP was in place, the U.S. government has saved from 1.9 billion to 3.2 billion for the cost of interviewing visitors. In sum, this research provides more concrete evidence to the discussion of VWP’s future expansion.

Suggested Citation

  • Xiaochu Hu, 2013. "Economic Benefits Associated With The Visa Waiver Program €“ A Difference-Indifference Approach," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 7(1), pages 81-89.
    • Handle: RePEc:ibf:gjbres:v:7:y:2013:i:1:p:81-89
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    Citations

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    Cited by:

    1. Chi, Pei-Yu & Lee, Kuei-Chun & Chang, Kuo-I, 2022. "Causal effect of tourist visa exemption schemes on international tourist arrivals," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 427-449.
    2. Tsuyoshi Goto & Nobuo Akai, 2017. "Benefit and Cost of Visa relaxation -Empirical Analysis on the Impact of Visa waiver-," Discussion Papers in Economics and Business 17-10, Osaka University, Graduate School of Economics.
    3. Robert A. Lawson & Saurav Roychoudhury, 2016. "Do travel visa requirements impede tourist travel?," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 40(4), pages 817-828, October.

    More about this item

    Keywords

    economic analysis; Immigration policy; Visa Waiver Program; difference-in-differences; tourism;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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