International Tourism, Demand, and GDP Implications: A Background and Empirical Analysis

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International tourism, a primary source of growth for many countries, is inadequately represented in the economic literature. This paper attempts to expand upon past research, thereby supplementing some deficiencies and posing new questions. A pooled model for international tourism demand is constructed for 85 countries using fixed-effects specification. In addition to conventional variables, a variable representing political conditions acts as a proxy for the many exogenous impacts that affect tourism. The nature of tourism volatility due to these exogenous shocks is discussed, and a statistical link between concentrations in tourism as an export good and GDP volatility is explored.