This study aimed to investigate the relationship between international trade and international tourism demand in Indonesia. This research combined dataset of 31 countries from 2005-2015, and use the Generalized Method of Moments (GMM) estimation to take down the notions of endogeneity, heteroscedasticity, and serial correlation. Furthermore, this study tried to fill the literature gap from have not examined the comparison between two proxy of international trade data, conventional measure, and Trade in Value Added (TiVA), particularly in Indonesia. Based on the estimation, both indicators have a positive and significant relation with foreign tourist arrivals. Besides, we found that the TiVA measure was more potent than current data. These findings could be useful as complementary of government strategies in order to enhance the country trade as well as stimulate Indonesia's inbound tourism.
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