How important is tourism for the international transmission of cyclical fluctuations? Evidence from the Mediterranean

Fabio Canova and Pietro Dallari

No 1553, Working Paper Series from European Central Bank

Abstract: We quantify the importance of the tourism channel for the international transmission of cyclical fluctuations to the Mediterranean basin. We use five destination countries and a number of source countries to provide broad evidence on the link. Source country output shocks produce important fluctuations in international tourism flows. Absent the tourism channel, the output effects in a typical destination country would be reduced by about one-fourth. Imported shocks account for an important portion of the fluctuations in destination countries variables. Policy prescriptions are discussed. JEL Classification: E32, C32

Keywords: Bayesian random coefficient VARs; International business cycles; Mediterranean basin; Tourism flows (search for similar items in EconPapers)
Date: 2013-06
New Economics Papers: this item is included in nep-tur
Note: 1332270
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20131553

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