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Effect of Approved Destination Status on Mainland Chinese Travel Abroad

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  • Shawn Arita
  • Sumner La Croix
  • Christopher Edmonds

Abstract

type="main"> Approved Destination Status (ADS) agreements facilitate international leisure travel by Chinese citizens, allowing authorized travel agencies to offer group tour arrangements, including visa applications. The number of destinations with ADS agreements increased from 2 in 1983 to 114 in 2012. Using panel data for Chinese visitor arrivals in 58 countries from 1985 to 2005, we estimate a semi-parametric matched difference-in-differences model of the impact of ADS on overseas departures from mainland China. Treatment with ADS increased Chinese visitor arrivals in the 3-year period following ADS designation by more than 10 percent annually, with results varying substantially across countries.

Suggested Citation

  • Shawn Arita & Sumner La Croix & Christopher Edmonds, 2014. "Effect of Approved Destination Status on Mainland Chinese Travel Abroad," Asian Economic Journal, East Asian Economic Association, vol. 28(3), pages 217-237, September.
    • Handle: RePEc:bla:asiaec:v:28:y:2014:i:3:p:217-237
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    File URL: http://hdl.handle.net/10.1111/asej.12034
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    1. Sucharita Ghosh & Donald Lien & Steven Yamarik, 2017. "Does the Confucius Institute Network Impact Cultural Distance? A Panel Data Analysis of Cross-Border Flows in and out of China," Asian Economic Journal, East Asian Economic Association, vol. 31(3), pages 299-323, September.

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