IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v28y2022i2p394-417.html
   My bibliography  Save this article

Tourism and migration: Identifying the channels with gravity models

Author

Listed:
  • Maria Santana-Gallego

    (16745Universitat de les Illes Balears, Spain)

  • Jordi Paniagua

    (University of Valencia, Spain)

Abstract

As a result of the role played by migrants in supporting host economies, the interest in understanding the impact of migration is growing. However, the literature remains silent on the channels by which migration affects tourism. The present article aims to isolate the effect of migrant networks on tourism by exploring the role of information, travel costs, and demand for visiting friends and relatives. To this end, a theoretical framework that rests upon a structural gravity model is developed. The model allows not only a better understanding of the relationship between tourism and migration but also to overcome several empirical biases like the omission of multilateral resistance in tourism flows or controlling for endogeneity. The empirical analysis considered a sample of 34 OECD countries as destination/home and 157 origin/countries-of-birth for tourist arrivals/migration stock. A positive and robust effect of migration on inbound tourism is estimated and the three channels proposed to drive this nexus become relevant.

Suggested Citation

  • Maria Santana-Gallego & Jordi Paniagua, 2022. "Tourism and migration: Identifying the channels with gravity models," Tourism Economics, , vol. 28(2), pages 394-417, March.
  • Handle: RePEc:sae:toueco:v:28:y:2022:i:2:p:394-417
    DOI: 10.1177/1354816620972597
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1354816620972597
    Download Restriction: no

    File URL: https://libkey.io/10.1177/1354816620972597?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Murat Genc & Masood Gheasi & Peter Nijkamp & Jacques Poot, 2012. "The impact of immigration on international trade: a meta-analysis," Chapters, in: Peter Nijkamp & Jacques Poot & Mediha Sahin (ed.), Migration Impact Assessment, chapter 9, pages 301-337, Edward Elgar Publishing.
    2. Etzo, Ivan & Massidda, Carla & Piras, Romano, 2014. "Migration and outbound tourism: Evidence from Italy," Annals of Tourism Research, Elsevier, vol. 48(C), pages 235-249.
    3. Mariya Aleksynska & Giovanni Peri, 2014. "Isolating the Network Effect of Immigrants on Trade," The World Economy, Wiley Blackwell, vol. 37(3), pages 434-455, March.
    4. Frédéric Docquier & Elisabetta Lodigiani, 2010. "Skilled Migration and Business Networks," Open Economies Review, Springer, vol. 21(4), pages 565-588, September.
    5. Laszlo Balazsi & Laszlo Matyas & Tom Wansbeek, 2018. "The estimation of multidimensional fixed effects panel data models," Econometric Reviews, Taylor & Francis Journals, vol. 37(3), pages 212-227, March.
    6. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    7. Christopher Parsons & Pierre‐Louis Vézina, 2018. "Migrant Networks and Trade: The Vietnamese Boat People as a Natural Experiment," Economic Journal, Royal Economic Society, vol. 128(612), pages 210-234, July.
    8. Walter Steingress, 2018. "The causal impact of migration on US trade: Evidence from political refugees," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 51(4), pages 1312-1338, November.
    9. Luc Laeven & Fabian Valencia, 2020. "Systemic Banking Crises Database II," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 68(2), pages 307-361, June.
    10. Tamara Mata & Carlos Llano, 2013. "Social networks and trade of services: modelling interregional flows with spatial and network autocorrelation effects," Journal of Geographical Systems, Springer, vol. 15(3), pages 319-367, July.
    11. Lin Crase & Julie Jackson, 2000. "Assessing the Effects of Information Asymmetry in Tourism Destinations," Tourism Economics, , vol. 6(4), pages 321-334, December.
    12. Giovanni Peri & Francisco Requena‐Silvente, 2010. "The trade creation effect of immigrants: evidence from the remarkable case of Spain," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(4), pages 1433-1459, November.
    13. James E. Anderson & Yoto V. Yotov, 2012. "Gold Standard Gravity," NBER Working Papers 17835, National Bureau of Economic Research, Inc.
    14. Fourie, Johan & Santana-Gallego, María, 2013. "Ethnic reunion and cultural affinity," Tourism Management, Elsevier, vol. 36(C), pages 411-420.
    15. Kusum Mundra, 2014. "Immigration and Trade Creation for the United States: Role of Immigrant Occupation," The International Trade Journal, Taylor & Francis Journals, vol. 28(4), pages 311-343, October.
    16. Mariacristina Piva & Massimiliano Tani & Marco Vivarelli, 2018. "Business visits, knowledge diffusion and productivity," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(4), pages 1321-1338, October.
    17. Balli, Faruk & Balli, Hatice O. & Jean Louis, Rosmy, 2016. "The impacts of immigrants and institutions on bilateral tourism flows," Tourism Management, Elsevier, vol. 52(C), pages 221-229.
    18. Felbermayr, Gabriel J. & Toubal, Farid, 2012. "Revisiting the Trade-Migration Nexus: Evidence from New OECD Data," World Development, Elsevier, vol. 40(5), pages 928-937.
    19. Richard Baldwin & Daria Taglioni, 2006. "Gravity for Dummies and Dummies for Gravity Equations," NBER Working Papers 12516, National Bureau of Economic Research, Inc.
    20. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    21. Carla Massidda & Romano Piras, 2015. "Does Internal Migration Affect Italian Domestic Tourism? A Panel Data Analysis," Tourism Economics, , vol. 21(3), pages 581-600, June.
    22. Hatzigeorgiou, Andreas, 2010. "Does Immigration Stimulate Foreign Trade? Evidence from Sweden," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 25, pages 376-402.
    23. Andreas Hatzigeorgiou & Magnus Lodefalk, 2015. "Trade, Migration and Integration – Evidence and Policy Implications," The World Economy, Wiley Blackwell, vol. 38(12), pages 2013-2048, December.
    24. Cuadros, Ana & Martín-Montaner, Joan & Paniagua, Jordi, 2019. "Migration and FDI: The role of job skills," International Review of Economics & Finance, Elsevier, vol. 59(C), pages 318-332.
    25. Louis Putterman & David N. Weil, 2010. "Post-1500 Population Flows and The Long-Run Determinants of Economic Growth and Inequality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1627-1682.
    26. Tomohara, Akinori, 2017. "Does immigration crowd out foreign direct investment inflows? Tradeoff between contemporaneous FDI-immigration substitution and ethnic network externalities," Economic Modelling, Elsevier, vol. 64(C), pages 40-47.
    27. Javorcik, Beata S. & Özden, Çaglar & Spatareanu, Mariana & Neagu, Cristina, 2011. "Migrant networks and foreign direct investment," Journal of Development Economics, Elsevier, vol. 94(2), pages 231-241, March.
    28. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    29. Johan Fourie & Jaume Rosselló & Maria Santana-Gallego, 2015. "Religion, Religious Diversity and Tourism," Kyklos, Wiley Blackwell, vol. 68(1), pages 51-64, February.
    30. Cuadros, Ana & Martín-Montaner, Joan & Paniagua, Jordi, 2016. "Homeward bound FDI: Are migrants a bridge over troubled finance?," Economic Modelling, Elsevier, vol. 58(C), pages 454-465.
    31. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
    32. Gould, David M, 1994. "Immigrant Links to the Home Country: Empirical Implications for U.S. Bilateral Trade Flows," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 302-316, May.
    33. Fally, Thibault, 2015. "Structural gravity and fixed effects," Journal of International Economics, Elsevier, vol. 97(1), pages 76-85.
    34. Davide Provenzano, 2020. "The migration–tourism nexus in the EU28," Tourism Economics, , vol. 26(8), pages 1374-1393, December.
    35. Eric Neumayer & Thomas Plümper, 2016. "Spatial spill-overs from terrorism on tourism: Western victims in Islamic destination countries," Public Choice, Springer, vol. 169(3), pages 195-206, December.
    36. Keith Head & John Ries, 1998. "Immigration and Trade Creation: Econometric Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 31(1), pages 47-62, February.
    37. Erik Figueiredo & Luiz Renato Lima & Gianluca Orefice, 2016. "Migration and Regional Trade Agreements: A (New) Gravity Estimation," Review of International Economics, Wiley Blackwell, vol. 24(1), pages 99-125, February.
    38. Felbermayr, Gabriel J. & Jung, Benjamin, 2009. "The pro-trade effect of the brain drain: Sorting out confounding factors," Economics Letters, Elsevier, vol. 104(2), pages 72-75, August.
    39. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
    40. José V. Blanes, 2005. "Does Immigration Help to Explain Intra-Industry Trade? Evidence for Spain," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(2), pages 244-270, July.
    41. Andrew Myburgh & Jordi Paniagua, 2016. "Does International Commercial Arbitration Promote Foreign Direct Investment?," Journal of Law and Economics, University of Chicago Press, vol. 59(3), pages 597-627.
    42. Gopinath, G. & Helpman, . & Rogoff, K. (ed.), 2014. "Handbook of International Economics," Handbook of International Economics, Elsevier, edition 1, volume 4, number 4.
    43. James E. Anderson, 2011. "The Gravity Model," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 133-160, September.
    44. Seetaram, Neelu, 2012. "Immigration and international inbound tourism: Empirical evidence from Australia," Tourism Management, Elsevier, vol. 33(6), pages 1535-1543.
    45. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    46. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Federico Carril-Caccia & José María Martín Martín & Francisco Javier Sáez-Fernández, 2024. "How important are borders for tourism? The case of Europe," Tourism Economics, , vol. 30(1), pages 27-43, February.
    2. Paniagua, Jordi & Peiró-Palomino, Jesús & Santana-Gallego, María, 2022. "Does happiness drive tourism decisions?," Economic Modelling, Elsevier, vol. 111(C).
    3. Igor Drapkin & Savin Ivan & Zverev Ilya, 2024. "Revisiting the Effect of Hosting Large-Scale Sport Events on International Tourist Inflows," Journal of Sports Economics, , vol. 25(1), pages 98-125, January.
    4. Artjoms Ivlevs & Ian Smith, 2024. "Do international tourist arrivals change residents’ attitudes towards immigration? A longitudinal study of 28 European countries," Tourism Economics, , vol. 30(1), pages 104-131, February.
    5. Ivlevs, Artjoms & Smith, Ian, 2023. "Do International Tourist Arrivals Change Residents' Attitudes Towards Immigration? A Longitudinal Study of 28 European Countries," IZA Discussion Papers 15953, Institute of Labor Economics (IZA).
    6. Manrique-de-Lara-Peñate, Casiano & Santana Gallego, María & Valle, Elisabeth Valle, 2022. "The economic impact of global uncertainty and security threats on international tourism," Economic Modelling, Elsevier, vol. 113(C).
    7. Jaume Rosselló Nadal & María Santana Gallego, 2022. "Gravity models for tourism demand modeling: Empirical review and outlook," Journal of Economic Surveys, Wiley Blackwell, vol. 36(5), pages 1358-1409, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christopher R. Parsons & L. Alan Winters, 2014. "International migration, trade and aid: a survey," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 4, pages 65-112, Edward Elgar Publishing.
    2. Cuadros, Ana & Martín-Montaner, Joan & Paniagua, Jordi, 2019. "Migration and FDI: The role of job skills," International Review of Economics & Finance, Elsevier, vol. 59(C), pages 318-332.
    3. Massimiliano Bratti & Luca De Benedictis & Gianluca Santoni, 2020. "Immigrant entrepreneurs, diasporas, and exports," Journal of Regional Science, Wiley Blackwell, vol. 60(2), pages 249-272, March.
    4. Egger, Peter H. & Ehrlich, Maximilian v. & Nelson, Douglas R., 2020. "The trade effects of skilled versus unskilled migration," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 448-464.
    5. Andreas Hatzigeorgiou & Magnus Lodefalk, 2016. "Migrants’ Influence on Firm-level Exports," Journal of Industry, Competition and Trade, Springer, vol. 16(4), pages 477-497, December.
    6. Felbermayr, Gabriel & Grossmann, Volker & Kohler, Wilhelm, 2012. "Migration, International Trade and Capital Formation: Cause or Effect?," IZA Discussion Papers 6975, Institute of Labor Economics (IZA).
    7. Hatzigeorgiou, Andreas & Karpaty, Patrik & Kneller, Richard & Lodefalk, Magnus, 2016. "Immigrant Employment and the Contract Enforcement Costs of Offshoring," Ratio Working Papers 282, The Ratio Institute, revised 01 Feb 2022.
    8. Walter Steingress, 2018. "The causal impact of migration on US trade: Evidence from political refugees," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 51(4), pages 1312-1338, November.
    9. Mariya Aleksynska & Giovanni Peri, 2014. "Isolating the Network Effect of Immigrants on Trade," The World Economy, Wiley Blackwell, vol. 37(3), pages 434-455, March.
    10. Giorgia Giovannetti & Mauro Lonati, 2014. "The impact of product quality on the pro-trade elasticity of immigrants," Working Papers - Economics wp2014_11.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    11. Gianluca Orefice & Hillel Rapoport & Gianluca Santoni, 2021. "How Do Immigrants Promote Exports? Networks, Knowledge, Diversity," CESifo Working Paper Series 9288, CESifo.
    12. Massimiliano Bratti & Luca Benedictis & Gianluca Santoni, 2014. "On the pro-trade effects of immigrants," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(3), pages 557-594, August.
    13. Inmaculada Martínez‐Zarzoso & Robert Rudolf, 2020. "The trade facilitation impact of the Chinese diaspora," The World Economy, Wiley Blackwell, vol. 43(9), pages 2411-2436, September.
    14. Giorgia Giovannetti & Mauro Lanati, 2017. "Do High-Skill Immigrants trigger High-Quality Trade?," The World Economy, Wiley Blackwell, vol. 40(7), pages 1345-1380, July.
    15. Ottaviano, Gianmarco I.P. & Peri, Giovanni & Wright, Greg C., 2018. "Immigration, trade and productivity in services: Evidence from U.K. firms," Journal of International Economics, Elsevier, vol. 112(C), pages 88-108.
    16. Figueiredo, Erik & Lima, Luiz Renato & Orefice, Gianluca, 2020. "Migration, trade and spillover effects," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 405-421.
    17. Hélène Ehrhart & Maëlan Le Goff & Emmanuel Rocher & Raju Jan Singh, 2012. "Does Migration Foster Exports? An African Perspective," Working Papers 2012-38, CEPII research center.
    18. Filippo Santi & Giorgia Giovannetti & Margherita Velucchi, 2021. "Migrants know better: Migrants' networks and FDI," Working Papers - Economics wp2021_17.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    19. Rodolfo Metulini & Paolo Sgrignoli & Stefano Schiavo & Massimo Riccaboni, 2018. "The network of migrants and international trade," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(3), pages 763-787, December.
    20. Marina Murat, 2018. "Foreign education and international trade: empirical evidence from selected Latin American countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 32(1), pages 84-103, January.

    More about this item

    Keywords

    gravity equation; migration; tourism;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • L8 - Industrial Organization - - Industry Studies: Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:toueco:v:28:y:2022:i:2:p:394-417. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.