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Does the Confucius institute impact international travel to China? A panel data analysis

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  • Donald Lien
  • Sucharita Ghosh
  • Steven Yamarik

Abstract

This article examines the impact of Confucius Institutes on inbound travel to China. We estimate a panel gravity model of inbound tourism flows to China between 2004 and 2010. We use a Poisson pseudo-maximum likelihood estimator to control for heteroscedasticity endemic in gravity models (Santos Silva and Tenreyro, 2006). We find that the presence of Confucius Institute(s) in the source country increases overall tourism in general and business and worker tourists in particular.

Suggested Citation

  • Donald Lien & Sucharita Ghosh & Steven Yamarik, 2014. "Does the Confucius institute impact international travel to China? A panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 46(17), pages 1985-1995, June.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:1985-1995
    DOI: 10.1080/00036846.2014.889802
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    Cited by:

    1. Akhtaruzzaman, Muhammad & Berg, Nathan & Lien, Donald, 2017. "Confucius Institutes and FDI flows from China to Africa," China Economic Review, Elsevier, vol. 44(C), pages 241-252.
    2. Steven Yamarik & Mariya Mileva, 2023. "Cultural institutes: Networks and determinants," The World Economy, Wiley Blackwell, vol. 46(4), pages 1119-1143, April.
    3. Wang, Hao & Han, Yonghui & Fidrmuc, Jan & Wei, Dongming, 2021. "Confucius Institute, Belt and Road Initiative, and Internationalization," International Review of Economics & Finance, Elsevier, vol. 71(C), pages 237-256.
    4. 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.
    5. Firat Demir & Hyeonjin Im, 2020. "Effects of cultural institutes on bilateral trade and FDI flows: Cultural diplomacy or economic altruism?," The World Economy, Wiley Blackwell, vol. 43(9), pages 2463-2489, September.
    6. Huiling Wang & Junmin Xi, 2016. "The Determinant of Inbound Tourism in China," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(2), pages 205-205, January.
    7. Lien, Donald & Lo, Melody, 2017. "Economic impacts of cultural institutes," The Quarterly Review of Economics and Finance, Elsevier, vol. 64(C), pages 12-21.
    8. Shanshan Ouyang & Yanxi Li, 2019. "Confucius Institute and the Completion of Chinese Cross-Border Acquisitions," Sustainability, MDPI, vol. 11(18), pages 1-22, September.
    9. Jaume Rosselló Nadal & María Santana Gallego, 2022. "Gravity models for tourism demand modeling: Empirical review and outlook," Journal of Economic Surveys, Wiley Blackwell, vol. 36(5), pages 1358-1409, December.

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    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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