 Political relations and tourism: evidence from ChinaYinxiao Chu, Xiaoyu Huang and Tao Jin Applied Economics, 2021, vol. 53, issue 45, 5281-5302 Abstract: This paper provides empirical evidence on how political relations affect the tourism market. We use monthly data to identify the pattern of short-lived effects of political shocks in the tourism market. A political relation shock has an immediate effect on Chinese outbound tourism, and then the effect is amplified in the next month before it vanishes in the following months. Particularly, the negative political shocks, namely political disputes, are responsible for most of the effects on outbound tourism. Moreover, we investigate the specific mechanism in China through which political relation shocks affect outbound tourism. We find that government interference by issuing travel warnings plays a crucial role in the mechanism. Further analysis on tourists’ demand shows that deterioration in political relations itself has no direct effects on tourists’ demand. However, when accompanied by the issuance of travel warnings, the negative political shocks significantly reduce tourists’ willingness to travel to the opposing countries. Date: 2021 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:53:y:2021:i:45:p:5281-5302 Ordering information: This journal article can be ordered from DOI: 10.1080/00036846.2021.1922591 Access Statistics for this article Applied Economics is currently edited by Anita Phillips More articles in Applied Economics from Taylor & Francis Journals |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.