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Tourism and Globalization: The International Division of Tourism Production

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  • Nowak, Jean-Jacques
  • Petit, Sylvain
  • Sahli, Mondher

Abstract

An important facet of globalization is the international fragmentation of production. This phenomenon, also called international division of production processes, outsourcing, vertical specialization, and so on, has been studied for goods and many services but has so far been ignored for tourism. This article attempts to rectify that by providing theoretical and empirical evidence of various aspects of the international division of tourism production. In the modeling section, the traditional Ricardian paradigm of international trade theory is deliberately chosen to explain how the international splitting up of value-added chains in the tourism industry can occur across countries. The authors then conduct an empirical study of a sample of 38 countries to measure these countries’ comparative advantages in two segments of the tourism product system. Data from 1980-2004 indicate that tourism production is globally fragmented and that the scale of such fragmented production is quite substantial. Using more disaggregated data for 15 EU countries, the authors find evidence of a high level of fragmented tourism production as well.

Suggested Citation

  • Nowak, Jean-Jacques & Petit, Sylvain & Sahli, Mondher, 2010. "Tourism and Globalization: The International Division of Tourism Production," MPRA Paper 75083, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:75083
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    Cited by:

    1. Nowak, Jean-Jacques & Petit, Sylvain & Sahli, Mondher, 2013. "Tourism and Globalization: A Trade Theoretic Approach," MPRA Paper 75087, University Library of Munich, Germany.
    2. Petit, Sylvain, 2016. "International trade in services and inequalities: Empirical evaluation and role of tourism services," MPRA Paper 75206, University Library of Munich, Germany.
    3. Claire GOAVEC & Jean-François HOARAU, 2015. "Vulnérabilité Économique Structurelle Et Dépendance Touristique : Quels Enseignements Pour Les Petites Économies Insulaires En Développement," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 42, pages 157-188.
    4. Claire Goavec & Jean-François Hoarau, 2015. "Structural economic vulnerability and tourism dependence: new assessment for small island developing economies [Vulnérabilité économique structurelle et dépendance touristique : quels enseignements," Post-Print hal-01454720, HAL.
    5. Begoña Fuster & Adelaida Lillo-Bañuls & Carmen Martínez-Mora, 2018. "Offshoring of services as a competitive strategy in the tourism industry," Tourism Economics, , vol. 24(8), pages 963-979, December.
    6. Chen, Xiaoqing & Zhang, Carol Xiaoyue & Stone, Timothy & Lamb, John, 2020. "Existentially understanding tourism in locale: A dwelling perspective," Annals of Tourism Research, Elsevier, vol. 80(C).
    7. Jean-Jacques Nowak & Sylvain Petit & Mondher Sahli, 2012. "Intra-Tourism Trade in Europe," Tourism Economics, , vol. 18(6), pages 1287-1311, December.
    8. Seyi Saint Akadiri & Gizem Uzuner & Ada Chigozie Akadiri & Taiwo Temitope Lasisi, 2021. "Environmental Kuznets curve hypothesis in the case of tourism island states: The moderating role of globalization," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 2846-2858, April.
    9. Lee, Seul Ki, 2015. "Quality differentiation and conditional spatial price competition among hotels," Tourism Management, Elsevier, vol. 46(C), pages 114-122.
    10. Claudio Detotto & Sauveur Giannoni & Claire Goavec, 2017. "Does good governance attract tourists?," Working Papers 002, Laboratoire Lieux, Identités, eSpaces et Activités (LISA).

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    More about this item

    Keywords

    tourism specialization; international fragmentation; comparative advantage; international tourism flows; value-added chain;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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