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

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  • Raffaele Paci

    ()

  • Emanuela Marrocu

    ()

Abstract

Firms productivity is crucially influenced by knowledge spillovers generated either by other firms located nearby or by direct contacts with consumers or by foreign demand in the case of traded products. In this paper we propose a new channel of efficiency-enhancing knowledge diffusion, which can be exploited by local firms to extract relevant information on consumer preferences: direct contacts with tourism flows. Tourists have the peculiar feature of being external consumers, who directly arrive to the destination region and this represents a remarkable advantage for the local enterprises, as the latter can exploit the new information and increase the overall efficiency level of the local economy. More specifically, we examine, within a spatial estimation framework, tourism flows as determinants of regional total factor productivity, controlling also for other intangible factors (such as human, social and technological capital) and for the degree of accessibility. We apply the analysis to a sample of 199 European regions belonging to the EU15 member countries, plus Switzerland and Norway. The empirical results show that tourism flows enhance regional efficiency and that a positive role is also played by intangible assets, infrastructures and spatial spillovers. Keywords: tourism, information, customer knowledge, total factor productivity, European regions JEL: L83, D83, O33, R10

Suggested Citation

  • Raffaele Paci & Emanuela Marrocu, 2011. "They arrive with new information. Tourism flows and production efficiency in the European regions," ERSA conference papers ersa10p493, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa10p493
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    Cited by:

    1. Rinaldo Brau & Anna Maria Pinna, 2013. "Movements of People for Movements of Goods?," The World Economy, Wiley Blackwell, vol. 36(10), pages 1318-1332, October.
    2. repec:eee:touman:v:39:y:2013:i:c:p:71-83 is not listed on IDEAS
    3. 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.
    4. Raffaele Paci & Emanuela Marrocu, 2014. "Tourism and regional growth in Europe," Papers in Regional Science, Wiley Blackwell, vol. 93, pages 25-50, November.
    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. Marrocu, Emanuela & Paci, Raffaele, 2013. "Different tourists to different destinations. Evidence from spatial interaction models," Tourism Management, Elsevier, vol. 39(C), pages 71-83.
    7. repec:eee:jbrese:v:76:y:2017:i:c:p:108-117 is not listed on IDEAS
    8. 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.
    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.

    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • 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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