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Patriotic Tourism Demand in Albania: A System GMM Model Approach

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  • Karma Emiljan

    (PhD, Associate Professor, Affiliation: Catholic University Our Lady of Good Counsel – Research Centre on Transition Economies, Tirana, Address: Rruga Dritan Hoxha, 23, 1064 Tirana, Albania)

Abstract

This paper aims to evaluate the determinants of international tourism demand in Albania following the existing literature and particulars of the tourism sector in Albania using Dynamic Panel Data from 2011 to 2019. The analysis is conducted on the sample of 20 countries of origin using the Two-Step GMM Model. The analysis highlights the importance of word-of-mouth effect in the tourism industry in Albania marked at the same time by inferior goods and services, as defined by the microeconomic theory. While on the one hand, tourism becomes very useful in terms of social cohesion (converging familiars and relatives), on the other hand, it can support better the general economic development. At the same time, this study underlines the relative importance of Government Spending. The National strategy on tourism must look not only at the tourism demand quantity but mostly at the sustainable and greater added value tourism segments.

Suggested Citation

  • Karma Emiljan, 2023. "Patriotic Tourism Demand in Albania: A System GMM Model Approach," South East European Journal of Economics and Business, Sciendo, vol. 18(2), pages 186-196, December.
    • Handle: RePEc:vrs:seejeb:v:18:y:2023:i:2:p:186-196:n:13
    DOI: 10.2478/jeb-2023-0027
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    More about this item

    Keywords

    International Tourism; Tourist Arrivals; Dynamic Panel Data; GMM; Albania;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C87 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Econometric Software
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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