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Unpublished Paper
Tourists in the gravity model
  • Chu-Ping LO, National Taiwan University
  • Gregory W WHITTEN
Motivated by the Chinese tourists’ buying behaviors overseas, this paper extends the Anderson and van Wincoop’s (2003) gravity model by incorporating tourist spending. We argue that tourist spending on local non-tourist industrial goods result in both substitution or income effect, and the latter effect dominates such that tourism promotes trade. 
  • Gravity Equation,
  • International Trade,
  • Tourism,
  • Tourists
Publication Date
Summer 2016
Citation Information
Chu-Ping LO and Gregory W WHITTEN. "Tourists in the gravity model" (2016)
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