Dutch Disease phenomenon and demand for international business travels: Panel ARDL/PMG estimation

Abstract

This article explores the long-run and short-run effect of natural resource rents on inbound and outbound business travels in resource-abundant economies. By applying panel ARDL/PMG models for 25 countries with annual data for 2005–2017, our results show that increases in dependency on natural resources lead to lower demand for inbound and outbound business travels in the long run. The short-run analyses indicate that while natural resource rents have a significant and positive impact on outbound business travels, they do not affect inbound business travels.

Panel data models in tourism research: Innovative applications and methods

“…This phenomenon is known as Dutch disease (Inchausti-Sintes, 2015). The paper by Gholipour et al (2022) studies the long-run and short-run effect of natural rents on inbound and outbound business travels in resource-abundant economies. It is expected that after an increase on natural resource rents, the currency appreciates, which causes a decrease in the inbound tourism flow and an increase in the outbound tourism flow.…”