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Interdependence of international tourism demand for Mediterranean countries: Impact of demand shocks
Author(s) -
Kožić Ivan,
Sorić Petar,
Sever Ivan
Publication year - 2018
Publication title -
international journal of tourism research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.155
H-Index - 58
eISSN - 1522-1970
pISSN - 1099-2340
DOI - 10.1002/jtr.2244
Subject(s) - tourism , shock (circulatory) , demand shock , destinations , economics , vector autoregression , econometric analysis , econometric model , mediterranean climate , economic geography , economy , regional science , geography , macroeconomics , econometrics , archaeology , medicine
Interdependence of tourism demand is an underexplored topic in tourism economics literature. Besides the traditional procedure of cross elasticities calculation, shock analysis could be used to investigate the interconnections of tourism flows. This paper conducts an econometric analysis of international tourism demand for 10 most developed Mediterranean destinations: Croatia, Cyprus, France, Greece, Italy, Malta, Morocco, Spain, Tunisia, and Turkey. In particular, a vector autoregression model is estimated for each pair of 10 countries. Impulse response functions are applied to investigate how a shock in tourism demand for one country impacts the tourism demand for its substitutes and complements.