Tourism and Trade Nexus in Africa: A Gravity Model Approach
The tourism industry is now an important economic sector in Africa. However, as with trade, Africa’s global share of the tourism industry is quite small, which could be attributed to a similarly low level of both intra-regional trade and tourism. Prevailing data and studies suggest that there is a...
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doaj-dd21ac18ca5c4f2497d2b17afaf8c6f22021-08-25T06:10:41ZengAfricaJournalsAfrican Journal of Hospitality, Tourism and Leisure2223-814X2021-08-01103793804https://doi.org/10.46222/ajhtl.19770720-132Tourism and Trade Nexus in Africa: A Gravity Model ApproachGeoffrey Manyara0Laura Naliaka1United Nations Economic Commission for AfricaAfrica Economic Research ConsortiumThe tourism industry is now an important economic sector in Africa. However, as with trade, Africa’s global share of the tourism industry is quite small, which could be attributed to a similarly low level of both intra-regional trade and tourism. Prevailing data and studies suggest that there is a relationship between tourism and trade. The aim of this study, therefore, is to examine the empirical link between tourism and exports in Africa for the period 2006 to 2015. We estimate a structural gravity model using the Poisson pseudo maximum likelihood (PPML) estimator that allows for bilateral zero trade values between trading partners, controls for heteroskedasticity and addresses the potential endogeneity. We find that a 10 percent increase in intra-African tourism boosts the continental exports by between 1.4 and 3.2 percent. These results strongly posit that boosting regional tourism could be instrumental in catalysing intra-African trade, especially within the context of the African Continental Free Trade Area (AfCFTA). https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_1_10_3_793-804.pdftourismtradeintra-africanafcftagravity model |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Geoffrey Manyara Laura Naliaka |
spellingShingle |
Geoffrey Manyara Laura Naliaka Tourism and Trade Nexus in Africa: A Gravity Model Approach African Journal of Hospitality, Tourism and Leisure tourism trade intra-african afcfta gravity model |
author_facet |
Geoffrey Manyara Laura Naliaka |
author_sort |
Geoffrey Manyara |
title |
Tourism and Trade Nexus in Africa: A Gravity Model Approach |
title_short |
Tourism and Trade Nexus in Africa: A Gravity Model Approach |
title_full |
Tourism and Trade Nexus in Africa: A Gravity Model Approach |
title_fullStr |
Tourism and Trade Nexus in Africa: A Gravity Model Approach |
title_full_unstemmed |
Tourism and Trade Nexus in Africa: A Gravity Model Approach |
title_sort |
tourism and trade nexus in africa: a gravity model approach |
publisher |
AfricaJournals |
series |
African Journal of Hospitality, Tourism and Leisure |
issn |
2223-814X |
publishDate |
2021-08-01 |
description |
The tourism industry is now an important economic sector in Africa. However, as with trade, Africa’s global share of the tourism industry is quite small, which could be attributed to a similarly low level of both intra-regional
trade and tourism. Prevailing data and studies suggest that there is a relationship between tourism and trade. The aim of this study, therefore, is to examine the empirical link between tourism and exports in Africa for the period 2006 to 2015. We estimate a structural gravity model using the Poisson pseudo maximum likelihood (PPML) estimator that allows for bilateral zero trade values between trading partners, controls for heteroskedasticity and
addresses the potential endogeneity. We find that a 10 percent increase in intra-African tourism boosts the continental exports by between 1.4 and 3.2 percent. These results strongly posit that boosting regional tourism
could be instrumental in catalysing intra-African trade, especially within the context of the African Continental Free Trade Area (AfCFTA). |
topic |
tourism trade intra-african afcfta gravity model |
url |
https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_1_10_3_793-804.pdf |
work_keys_str_mv |
AT geoffreymanyara tourismandtradenexusinafricaagravitymodelapproach AT lauranaliaka tourismandtradenexusinafricaagravitymodelapproach |
_version_ |
1721196886493233152 |