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

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  • E. Marrocu
  • R. Paci

Abstract

It is well known that firms productivity is influenced by information spillovers generated either by other firms located nearby or by direct contacts with final demand or by foreign demand in the case of traded products. In this paper we investigate a new channel of efficiency - enhancing information spillovers - tourism flows. The idea is that tourists, in general, have preferences for high quality goods and differentiated products which are revealed when they buy local products in the tourism destinations, thus transmitting relevant information to the local firms. The latter, in turn, exploit this new information generating a positive impact on the efficiency level of the local economy. More specifically we examine the effects of tourist flows on regional total factor productivity, within a spatial dynamic model, controlling also for other intangible factors (such as human, social and technological capital) and for the degree of accessibility. We apply the analysis to 199 European regions belonging to the EU15 member countries, plus Switzerland and Norway. The econometric results show the positive impact of tourism flows on regional efficiency levels together with the positive role played by intangible assets, infrastructures and spatial spillovers.

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  • E. Marrocu & R. Paci, 2009. "They arrive with new information. Tourism flows and production efficiency in the European regions," Working Paper CRENoS 200910, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  • Handle: RePEc:cns:cnscwp:200910
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    2. Marrocu, Emanuela & Paci, Raffaele, 2013. "Different tourists to different destinations. Evidence from spatial interaction models," Tourism Management, Elsevier, vol. 39(C), pages 71-83.
    3. Bo Zhou & Yanping Xu & Seul Ki Lee, 2019. "Tourism development and regional production efficiency: Evidence from southwestern China," Tourism Economics, , vol. 25(5), pages 800-818, August.
    4. Bianca Biagi & Barbara Dettori & Raffaele Paci & Stefano Usai, 2021. "Economic Development in Sardinia: Overcoming the Insularity Gap," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 129(2), pages 165-186.
    5. Michael Beenstock & Daniel Felsenstein & Ziv Rubin, 2015. "Visa waivers, multilateral resistance and international tourism: some evidence from Israel," Letters in Spatial and Resource Sciences, Springer, vol. 8(3), pages 357-371, November.
    6. 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.
    7. Georges Harb & Charbel Bassil, 2023. "TFP in the Manufacturing Sector: Long-Term Dynamics, Country and Regional Comparative Analysis," Economies, MDPI, vol. 11(2), pages 1-22, January.
    8. Canh Phuc Nguyen & Binh Quang Nguyen & Duyen Thuy Le Tran, 2023. "The Influence of Information Technologies and International Tourism on Trade," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 83-100, October.
    9. 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.
    10. Delia Popescu & Iulia Monica Oehler-Sincai & Daniel Bulin & Ion Alexandru Tanase, 2018. "Cee-16: A Cluster Analysis Based on Tourism Competitiveness and Correlations With Major Determinants," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 20(S12), pages 833-833, November.
    11. Abida RAMZAN* & Bilal MEHMOOD*, 2018. "ARE FORESTRY AND FOREIGNERS BOUNTY FOR MACROECONOMIC PERFORMANCE? A Global Evidence," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 28(1), pages 83-102.
    12. , 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.
    13. Raffaele Paci & Emanuela Marrocu, 2014. "Tourism and regional growth in Europe," Papers in Regional Science, Wiley Blackwell, vol. 93, pages 25-50, November.
    14. 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.
    15. Briec, Walter & Kerstens, Kristiaan & Prior, Diego & Van de Woestyne, Ignace, 2018. "Testing general and special Färe-Primont indices: A proposal for public and private sector synthetic indices of European regional expenditures and tourism," European Journal of Operational Research, Elsevier, vol. 271(2), pages 756-768.
    16. 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.
    17. Thomas Schatzer & Matthias Siller & Janette Walde & Gottfried Tappeiner, 2019. "The Impact of Model Choice on Estimates of Regional TFP," International Regional Science Review, , vol. 42(1), pages 98-116, January.
    18. Weidenfeld, Adi & Makkonen, Teemu & Clifton, Nick, 2021. "From interregional knowledge networks to systems," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    19. Ljubica Knezevic Cvelbar & Mojca Mayr & Damjan Vavpotic, 2018. "Geographical mapping of visitor flow in tourism," Tourism Economics, , vol. 24(6), pages 701-719, September.
    20. Pengfei Zhang & Hu Yu & Mingzhe Shen & Wei Guo, 2022. "Evaluation of Tourism Development Efficiency and Spatial Spillover Effect Based on EBM Model: The Case of Hainan Island, China," IJERPH, MDPI, vol. 19(7), pages 1-21, March.
    21. Yang, Yang & Mao, Zhenxing (Eddie), 2017. "Do independent hotels benefit from the presence of branded ones?," Journal of Business Research, Elsevier, vol. 76(C), pages 108-117.
    22. Gallardo-Vázquez Dolores & Hernández-Ponce Oscar Ernesto & Valdez-Juárez Luis Enrique, 2019. "Impact factors for the development of a competitive and sustainable tourist destination. Case: Southern Sonora Region," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 9(2), pages 3-14, December.
    23. 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.
    24. Huang-Ping Yen & Po-Chi Chen & Kung-Cheng Ho, 2021. "Analyzing Destination Accessibility From the Perspective of Efficiency Among Tourism Origin Countries," SAGE Open, , vol. 11(2), pages 21582440211, April.
    25. 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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    More about this item

    Keywords

    tourism; total factor productivity; european regions; information;
    All these keywords.

    JEL classification:

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

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