Impact of Foreign Tourists on Productivity in the Accommodation Industry: A panel data analysis

Masayuki Morikawa

No DP17-012, SSPJ Discussion Paper Series from Service Sector Productivity in Japan: Determinants and Policies, Institute of Economic Research, Hitotsubashi University

Abstract: Recently, the number of foreign tourists visiting Japan has been rapidly increasing, and the overseas travel balance has drastically changed. By using micro panel data, this study empirically analyzes the effects of this increase on productivity in the accommodation industry. The novelty of this study is represented by the use of a physical productivity measure to document an unexplored channel through which service trade contributes to increasing the productivity in the domestic service industry. The estimation results show that an increase in the number of foreign guests significantly improves the measured total factor productivity (TFP) of the accommodation facilities, although the effect of foreign presence is quite heterogeneous across facilities.

Keywords: Foreign tourism; Accommodation industry; TFP; Demand smoothing (search for similar items in EconPapers)
JEL-codes: D24 F61 L83 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2017-08
Note: This paper is based on joint research with the Research Institute of Economy, Trade and Industry (RIETI).
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Impact of Foreign Tourists on Productivity in the Accommodation Industry: A panel data analysis (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:hit:sspjdp:dp17-012

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