The Determinants and Features of Services Trade in Travel Services: A Spatial Augmented Gravity Model Approach

• Main Authors: Yu-Chien Chang, 張淯茜
• Other Authors: Shun-Chiao Chang
• Format: Others
• Language: en_US
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/q2swvf

碩士 === 國立臺灣科技大學 === 企業管理系 === 105 === This study investigates the determinants of exports of travel services by utilizing a spatial augmented gravity model with data for 36 major exporting countries covering the period from 2005 to 2014. The empirical results of the FEM and Hausman-Taylor Model (HTM) are summarized as follows. The empirical results related to GDP are emerged the same coefficients, and that indicates that economic development, condition and structure are the basic but critical determinates in travel services. First, the host countries’ GDPs have a significant positive impact on the exports of travel services. This means that the host countries could expand their exports of travel services by strengthening their economic performance and conditions. Secondly, for both the home and the host countries, per capita GDP is an important determinant of exports of travel services, implying that the income of the home and the host countries significantly influences the willingness to travel. Third, in addition, there is a significant positive relationship between the services in the GDP of the home country and the exports of travel services. This reveals that the economic structure of the home country is dominated by services, and that is helpful in terms of expanding its exports of travel services. Fourth, although the technology has been dramatically improved in recent decades, the geographical distance is still a barrier to travel services. Fifth, the revealed comparative advantage also has an obviously positive impact on the exports of travel services. This indicates that all of the sample countries indeed have a comparative advantage in travel services, so that they could represent the overall situation of travel services in the world. Sixth, the market potential positively affects the exports of travel services, pointing out that the host country will play a more and more critical role in travel services. Seventh, the results of the real exchange rate and the infrastructure are contrary to a number of studies, demonstrating that the effect of exports of travel services should be considered in the long-term. Finally, the financial crisis and a common language have a significantly positive impact on the exports of travel services. This reveals that people became more willing to travel to developing countries following the financial crisis, due to being affected by the cost of travel.