How Big? The Impact of Approved Destination Status on Mainland Chinese Travel Abroad

Shawn Arita (), Sumner La Croix and James Mak ()
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Shawn Arita: Department of Economics, University of Hawaii at Manoa
James Mak: Department of Economics, University of Hawaii at Manoa

No 201212, Working Papers from University of Hawaii at Manoa, Department of Economics

Abstract: China’s Approved Destination Status (ADS) policy governs foreign leisure travel by citizens to ADS-designated countries. To model the effects of ADS on Chinese visitor arrivals, we specify a model of demand for a representative Chinese consumer who values trips to n differentiated foreign destinations. Using panel data for Chinese visitor arrivals for 61 countries from 1985 to 2005, we estimate fixed effects models accounting for selection effects and a semiparametric matched difference-in-differences (DID) model. The semiparametric matched DID estimates indicate that ADS increased Chinese visitor arrivals annually by 10.5 to 15.7 percent in the three-year period following ADS designation.

Keywords: Approved Destination Status; ADS; China; Tourism (search for similar items in EconPapers)
JEL-codes: F13 F14 L83 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2012-06-13
New Economics Papers: this item is included in nep-tre and nep-tur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://www.economics.hawaii.edu/research/workingpapers/WP_12-12.pdf First version, 2012 (application/pdf)

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Working Paper: How Big? The Impact of Approved Destination Status on Mainland Chinese Travel Abroad (2012)
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