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How Big? The Impact of Approved Destination Status on Mainland Chinese Travel Abroad

Author

Listed:
  • Shawn Arita

    (University of Hawaii at Manoa, Department of Economics)

  • Sumner La Croix

    (UHERO, University of Hawaii at Manoa)

  • James Mak

    (UHERO, University of Hawaii at Manoa)

Abstract

China�s Approved Destination Status (ADS) policy governs foreign leisure travel by citizens to ADS-designated countries. To model the effects of ADS on Chinese visitor arrivals, we specify a model of demand for a representative Chinese consumer who values trips to n differentiated foreign destinations. Using panel data for Chinese visitor arrivals for 61 countries from 1985 to 2005, we estimate fixed effects models accounting for selection effects and a semiparametric matched difference-in-differences (DID) model. The semiparametric matched DID estimates indicate that ADS increased Chinese visitor arrivals annually by 10.5 to 15.7 percent in the three-year period following ADS designation.

Suggested Citation

  • Shawn Arita & Sumner La Croix & James Mak, 2012. "How Big? The Impact of Approved Destination Status on Mainland Chinese Travel Abroad," Working Papers 2012-3, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    • Handle: RePEc:hae:wpaper:2012-3
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    References listed on IDEAS

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    1. Torsten Persson & Guido Tabellini, 2007. "The growth effect of democracy: Is it heterogenous and how can it be estimated?," Working Papers 322, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    2. Willem A. Naudé & Andrea Saayman, 2005. "Determinants of Tourist Arrivals in Africa: A Panel Data Regression Analysis," Tourism Economics, , vol. 11(3), pages 365-391, September.
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    4. Alberto Abadie, 2005. "Semiparametric Difference-in-Differences Estimators," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 1-19.
    5. Shawn Arita & Christopher Edmonds & Sumner La Croix & James Mak, 2011. "Impact of Approved Destination Status on Chinese Travel Abroad: An Econometric Analysis," Tourism Economics, , vol. 17(5), pages 983-996, October.
    6. World Bank, 2008. "World Development Indicators 2008," World Bank Publications - Books, The World Bank Group, number 28241.
    7. Keisuke Hirano & Guido W. Imbens & Geert Ridder, 2003. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," Econometrica, Econometric Society, vol. 71(4), pages 1161-1189, July.
    8. World Bank, 2008. "World Development Indicators 2008," World Bank Publications - Books, The World Bank Group, number 11855.
    9. Shawn Arita & Christopher Edmonds & Sumner La Croix & James Mak, 2009. "The Impact of Approved Destination Status on Chinese Travel Abroad: An Economic Analysis," Working Papers 200918, University of Hawaii at Manoa, Department of Economics.
    10. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
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    Cited by:

    1. Shawn Arita & Sumner La Croix & James Mak, 2012. "How China's Approved Destination Status Policy Spurs and Hinders Chinese Travel Abroad," Working Papers 201215, University of Hawaii at Manoa, Department of Economics.
    2. Helble, Matthias, 2014. "The Pacific's Connectivity and Its Trade Implications," ADBI Working Papers 499, Asian Development Bank Institute.

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    More about this item

    Keywords

    Approved Destination Status; ADS; China; Tourism;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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