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How Big? The Impact of Approved Destination Status on Mainland Chinese Travel Abroad

Author

Listed:
  • Shawn Arita

    (University of Hawaii at Manoa, Department of Economics)

  • Sumner La Croix

    (UHERO, University of Hawaii at Manoa)

  • James Mak

    (UHERO, University of Hawaii at Manoa)

Abstract

China�s Approved Destination Status (ADS) policy governs foreign leisure travel by citizens to ADS-designated countries. To model the effects of ADS on Chinese visitor arrivals, we specify a model of demand for a representative Chinese consumer who values trips to n differentiated foreign destinations. Using panel data for Chinese visitor arrivals for 61 countries from 1985 to 2005, we estimate fixed effects models accounting for selection effects and a semiparametric matched difference-in-differences (DID) model. The semiparametric matched DID estimates indicate that ADS increased Chinese visitor arrivals annually by 10.5 to 15.7 percent in the three-year period following ADS designation.

Suggested Citation

  • Shawn Arita & Sumner La Croix & James Mak, 2012. "How Big? The Impact of Approved Destination Status on Mainland Chinese Travel Abroad," Working Papers 2012-3, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    • Handle: RePEc:hae:wpaper:2012-3
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    Cited by:

    1. Shawn Arita & Sumner La Croix & James Mak, 2012. "How China's Approved Destination Status Policy Spurs and Hinders Chinese Travel Abroad," Working Papers 2012-6R, University of Hawaii Economic Research Organization, University of Hawaii at Manoa, revised Oct 2012.
    2. Matthias Helble, 2014. "The Pacific's Connectivity and Its Trade Implications," ADBI Working Papers 499, Asian Development Bank Institute.

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    Keywords

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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