IDEAS home Printed from https://ideas.repec.org/a/eee/touman/v40y2014icp193-202.html
   My bibliography  Save this article

Domestic tourism demand of urban and rural residents in China: Does relative income matter?

Author

Listed:
  • Yang, Yang
  • Liu, Ze-Hua
  • Qi, Qiuyin

Abstract

The aim of this research is to investigate the domestic tourism demand of urban and rural residents in China. Based on the data from the National Household Tourism Survey, we specify Chinese domestic tourism demand as a function of absolute income, relative income, domestic tourism price, and substitute price. As a major contribution of this study, relative income is measured using the distance between individual income and average income over a city/province. Based on the estimation results from multilevel models, this paper highlights the effect of relative income on domestic tourism demand in some sub-regions of China. Furthermore, regional differences between residents in different sub-regions and different patterns of determinants between urban and rural residents are identified and discussed.

Suggested Citation

  • Yang, Yang & Liu, Ze-Hua & Qi, Qiuyin, 2014. "Domestic tourism demand of urban and rural residents in China: Does relative income matter?," Tourism Management, Elsevier, vol. 40(C), pages 193-202.
    • Handle: RePEc:eee:touman:v:40:y:2014:i:c:p:193-202
    DOI: 10.1016/j.tourman.2013.05.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0261517713001052
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.tourman.2013.05.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. AndrewE. Clark & Claudia Senik, 2010. "Who Compares to Whom? The Anatomy of Income Comparisons in Europe," Economic Journal, Royal Economic Society, vol. 120(544), pages 573-594, May.
    2. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
    3. Harold L. Cole & George J. Mailath & Andrew Postlewaite, 1995. "Incorporating concern for relative wealth into economic models," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 19(Sum), pages 12-21.
    4. Robert Cummins, 2000. "Personal Income and Subjective Well-being: A Review," Journal of Happiness Studies, Springer, vol. 1(2), pages 133-158, June.
    5. Cole, Harold L & Mailath, George J & Postlewaite, Andrew, 1992. "Social Norms, Savings Behavior, and Growth," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1092-1125, December.
    6. Alpizar, Francisco & Carlsson, Fredrik & Johansson-Stenman, Olof, 2005. "How much do we care about absolute versus relative income and consumption?," Journal of Economic Behavior & Organization, Elsevier, vol. 56(3), pages 405-421, March.
    7. Haiyan Song & Peter Romilly & Xiaming Liu, 2000. "An empirical study of outbound tourism demand in the UK," Applied Economics, Taylor & Francis Journals, vol. 32(5), pages 611-624.
    8. Tim Taylor & Ramon Arigoni Ortiz, 2009. "Impacts of Climate Change on Domestic Tourism in the UK: A Panel Data Estimation," Tourism Economics, , vol. 15(4), pages 803-812, December.
    9. Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, vol. 111(473), pages 465-484, July.
    10. Allen, David & Yap, Ghialy & Shareef, Riaz, 2009. "Modelling interstate tourism demand in Australia: A cointegration approach," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 79(9), pages 2733-2740.
    11. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    12. Deng, Minfeng & Athanasopoulos, George, 2011. "Modelling Australian domestic and international inbound travel: a spatial–temporal approach," Tourism Management, Elsevier, vol. 32(5), pages 1075-1084.
    13. McBride, Michael, 2001. "Relative-income effects on subjective well-being in the cross-section," Journal of Economic Behavior & Organization, Elsevier, vol. 45(3), pages 251-278, July.
    14. Rege, Mari, 2008. "Why do people care about social status?," Journal of Economic Behavior & Organization, Elsevier, vol. 66(2), pages 233-242, May.
    15. repec:hal:pseose:halshs-00754447 is not listed on IDEAS
    16. -, 2009. "The economics of climate change," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38679, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    17. Ferrer-i-Carbonell, Ada, 2005. "Income and well-being: an empirical analysis of the comparison income effect," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 997-1019, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bing Zuo & Zhaoqi Lai, 2020. "The effect of housing wealth on tourism consumption in China: Age and generation cohort comparisons," Tourism Economics, , vol. 26(2), pages 211-232, March.
    2. Lin, Zhibin & Chen, Ye & Filieri, Raffaele, 2017. "Resident-tourist value co-creation: The role of residents' perceived tourism impacts and life satisfaction," Tourism Management, Elsevier, vol. 61(C), pages 436-442.
    3. Yang Li & An-Chi Liu & Yi-Ying Yu & Yueru Zhang & Yiting Zhan & Wen-Cheng Lin, 2022. "Bootstrapped DEA and Clustering Analysis of Eco-Efficiency in China’s Hotel Industry," Sustainability, MDPI, vol. 14(5), pages 1-16, March.
    4. Lóránt Dénes Dávid & János Csapó & Ákos Nagy & Mária Törőcsik, 2020. "Can We Understand Non-Tourism as a Form of Sustainable Tourism? The Role of Lifestyle and Motivations behind Non-Traveling Based on the Hungarian Example," Sustainability, MDPI, vol. 12(18), pages 1-18, September.
    5. Rogerson Christian M., 2015. "Restructuring the geography of domestic tourism in South Africa," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 29(29), pages 119-135, September.
    6. Can Wang & Xianming Meng & Mahinda Siriwardana & Tien Pham, 2022. "The impact of COVID-19 on the Chinese tourism industry," Tourism Economics, , vol. 28(1), pages 131-152, February.
    7. Anne-Marie Lebrun & Roxane Corbel & Patrick Bouchet, 2022. "Impacts of Covid-19 on travel intention for summer 2020: a trend in proximity tourism mediated by an attitude towards Covid-19," Service Business, Springer;Pan-Pacific Business Association, vol. 16(3), pages 469-501, September.
    8. Martin Falk & Eva Hagsten & Xiang Lin, 2023. "Uneven domestic tourism demand in times of pandemic," Tourism Economics, , vol. 29(3), pages 596-611, May.
    9. Keying Ding & Mian Yang & Shixian Luo, 2021. "Mountain Landscape Preferences of Millennials Based on Social Media Data: A Case Study on Western Sichuan," Land, MDPI, vol. 10(11), pages 1-17, November.
    10. Luojia Wang & Kerui Du & Bin Fang & Rob Law, 2023. "Escape from air pollution: How does air quality in the place of residence shape tourism consumption?," Tourism Economics, , vol. 29(4), pages 1074-1099, June.
    11. Anne-Marie Lebrun & Che-Jen Su & Patrick Bouchet, 2021. "Domestic tourists’ experience in protected natural parks: A new trend in pandemic crisis?," Post-Print hal-03584047, HAL.
    12. Anne-Marie Lebrun & Che-Jen Su & Patrick Bouchet, 2021. "A More Sustainable Management of Domestic Tourists in Protected Natural Parks: A New Trend in Sport Tourism after the Covid-19 Pandemic?," Sustainability, MDPI, vol. 13(14), pages 1-21, July.
    13. Jianping Zha & Zhiyong Li, 2017. "Drivers of tourism growth," Tourism Economics, , vol. 23(5), pages 941-962, August.
    14. Canh Phuc Nguyen & Su Dinh Thanh & Bach Nguyen, 2022. "Economic uncertainty and tourism consumption," Tourism Economics, , vol. 28(4), pages 920-941, June.
    15. Ye Tan & Pingan Xiang & Shuning Liu & Liang Yu, 2023. "Evaluating provincial tourism competitiveness in China: an empirical application based on the EM-MGM-SNA model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(1), pages 506-527, January.
    16. Wang, Huey-jiun & Zhang, Dan, 2017. "Comparing literary tourism in Mainland China and Taiwan: The Lu Xun Native Place and the Lin Yutang House," Tourism Management, Elsevier, vol. 59(C), pages 234-253.
    17. Mengmeng Qiang & Manhong Shen & Huiming Xie, 2019. "Cultural diffusion and international inbound tourism: Evidence from China," Tourism Economics, , vol. 25(6), pages 884-903, September.
    18. Yongrui Guo & Jie Zhang & Honglei Zhang, 2016. "Rank–size distribution and spatio-temporal dynamics of tourist flows to China’s cities," Tourism Economics, , vol. 22(3), pages 451-465, June.
    19. Canh P Nguyen, 2023. "Last chance to travel or safety first? The influence of exposure to natural hazards and coping capacities on tourism consumption," Tourism Economics, , vol. 29(4), pages 952-985, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Clark, Andrew E. & Senik, Claudia, 2010. "Will GDP Growth Increase Happiness in Developing Countries?," CEPREMAP Working Papers (Docweb) 1024, CEPREMAP.
    2. Aronsson, Thomas & Johansson-Stenman, Olof, 2014. "Positional preferences in time and space: Optimal income taxation with dynamic social comparisons," Journal of Economic Behavior & Organization, Elsevier, vol. 101(C), pages 1-23.
    3. Tom Truyts, 2010. "Social Status In Economic Theory," Journal of Economic Surveys, Wiley Blackwell, vol. 24(1), pages 137-169, February.
    4. Thomas Aronsson & Olof Johansson-Stenman, 2013. "Veblen’s theory of the leisure class revisited: implications for optimal income taxation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(3), pages 551-578, September.
    5. Aronsson, Thomas & Johansson-Stenman, Olof, 2015. "Keeping up with the Joneses, the Smiths and the Tanakas: On international tax coordination and social comparisons," Journal of Public Economics, Elsevier, vol. 131(C), pages 71-86.
    6. Deepika Kandpal & Dibyendu Maiti, 2022. "Social Identity, Local Neighbourhood Effect and Conspicuous Consumption: Evidence From India," Working papers 327, Centre for Development Economics, Delhi School of Economics.
    7. Aronsson, Thomas & Johansson-Stenman, Olof, 2014. "State-variable public goods and social comparisons," Journal of Environmental Economics and Management, Elsevier, vol. 68(2), pages 390-410.
    8. Thomas Aronsson & Olof Johansson-Stenman, 2014. "When Samuelson Met Veblen Abroad: National and Global Public Good Provision when Social Comparisons Matter," Economica, London School of Economics and Political Science, vol. 81(322), pages 224-243, April.
    9. Thomas Aronsson & Sugata Ghosh & Ronald Wendner, 2023. "Positional preferences and efficiency in a dynamic economy," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(2), pages 311-337, August.
    10. Alpaslan Akay & Gökhan Karabulut & Peter Martinsson, 2013. "The effect of religiosity and religious festivals on positional concerns -- an experimental investigation of Ramadan," Applied Economics, Taylor & Francis Journals, vol. 45(27), pages 3914-3921, September.
    11. Senakpon F. A. Dedehouanou & Johan Swinnen & Miet Maertens, 2013. "Does Contracting Make Farmers Happy? Evidence from Senegal," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59, pages 138-160, October.
    12. Akay, Alpaslan & Bargain, Olivier B. & Giulietti, Corrado & Robalino, Juan D. & Zimmermann, Klaus F., 2016. "Remittances and relative concerns in rural China," China Economic Review, Elsevier, vol. 37(C), pages 191-207.
    13. Benjamin Schalembier, 2016. "The Impact of Exposure to Other Countries on Life Satisfaction: An International Application of the Relative Income Hypothesis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(1), pages 221-239, August.
    14. Kaizhi Yu & Yun Zhang & Hong Zou & Chenchen Wang, 2019. "Absolute Income, Income Inequality and the Subjective Well-Being of Migrant Workers in China: Toward an Understanding of the Relationship and Its Psychological Mechanisms," IJERPH, MDPI, vol. 16(14), pages 1-27, July.
    15. Aronsson, Thomas & Johansson-Stenman, Olof, 2014. "Paternalism against Veblen: Optimal Taxation and Non-Respected Preferences for Social Comparisons," Working Papers in Economics 606, University of Gothenburg, Department of Economics.
    16. Alpaslan Akay & Lisa Andersson & Peter Martinsson & Haileselassie Medhin, 2014. "Positional Concerns among the Poor: Does Reference Group Matter? Evidence from Survey Experiments," Journal of African Economies, Centre for the Study of African Economies, vol. 23(5), pages 673-699.
    17. Ateca Amestoy, Victoria María & Cortés Aguilar, Alexandra & Moro-Egido, Ana I., 2011. "Social Interactions and Subjective Well-Being: Evidence from Latin America," DFAEII Working Papers 1988-088X, University of the Basque Country - Department of Foundations of Economic Analysis II.
    18. Lombardo, Vincenzo, 2012. "Social inclusion and the emergence of development traps," MPRA Paper 36766, University Library of Munich, Germany.
    19. Mª del Salinas-Jiménez & Joaquín Artés & Javier Salinas-Jiménez, 2011. "Education as a Positional Good: A Life Satisfaction Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 103(3), pages 409-426, September.
    20. Montizaan, Raymond M. & Vendrik, Maarten C.M., 2014. "Misery Loves Company: Exogenous shocks in retirement expectations and social comparison effects on subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 97(C), pages 1-26.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:touman:v:40:y:2014:i:c:p:193-202. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/tourism-management .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.