ECONOMIC BENEFITS ASSOCIATED WITH THE VISA WAIVER PROGRAM – A DIFFERENCE-INDIFFERENCE APPROACH

Xiaochu Hu

Global Journal of Business Research, 2013, vol. 7, issue 1, 81-89

Abstract: This study evaluates the economic benefit that the Visa Waiver Program, VWP, brings to the United States, including decreased spending on administration and increased tourism. To capture the net effect of VWP due to increased tourism, this study conducts a semi-experimental evaluation by introducing a control group – it pairs a VWP member country with a non-member country. The results show a net increase of 3-4.5 tourism/business trips per thousand population for a VWP participating country. It concludes that in 2010, because the VWP was in place, the U.S. government has saved from 1.9 billion to 3.2 billion for the cost of interviewing visitors. In sum, this research provides more concrete evidence to the discussion of VWP’s future expansion.

Keywords: economic analysis; Immigration policy; Visa Waiver Program; difference-in-differences; tourism (search for similar items in EconPapers)
JEL-codes: C23 F22 (search for similar items in EconPapers)
Date: 2013
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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