| By: |
Canova, Fabio;
Dallari, Pietro |
| Abstract: |
We quantify the importance of the tourism channel for the international
transmission of cyclical fluctuations to the Mediterranean basin. We use five
destination countries and a number of source countries to provide broad
evidence on the link. Source country output shocks produce important
fluctuations in international tourism flows. Absent the tourism channel, the
output effects in a typical destination country would be reduced by about
one-fourth. Imported shocks account for an important portion of the
fluctuations in destination countries variables. Policy prescriptions are
discussed. JEL Classification: E32, C32 |
| Keywords: |
Bayesian random coefficient VARs, International Business Cycles, Mediterranean basin, Tourism flows |
| Date: |
2013–06 |
| URL: |
http://d.repec.org/n?u=RePEc:ecb:ecbwps:20131553&r=tur |