The Role of Tourism in Promoting Export Performance in Indonesia: Gravity Model Approach
Journal Title: Journal of Economics, Finance and Management Studies - Year 2021, Vol 4, Issue 08
Abstract
The tourism sector has the opportunity as a source of information regarding the demand preferences of foreign tourists for goods produced in tourist destination countries. The preference of foreign tourists in this study is measured by using the value of Indonesian exports of goods to the country of origin of tourists one year after their visits. The purpose of this study is to analyze the role of the tourism sector in increasing demand for exports of domestic goods by foreign tourists. To overcome the endogeneity problem, this study uses the Corruption Perception Index (CPI) as an instrumental variable which is estimated by Two Stage Least Square (2SLS). By using data on exports of goods based on Broad Economic Categories, the results show that the preferences of tourists from Malaysia, Singapore, China, Japan, and Australia for Indonesian products are in food and beverages (primary), food and beverages (processed), industrial commodities. supplies, and consumer goods. These results conclude that the tourism sector can boost export performance through intensive and extensive trade margins.
Authors and Affiliations
Andin Rahma Refiana, Rudi Purwono
Keywords
Related Articles
- EP ID EP705545
- DOI 10.47191/jefms/v4-i8-30
- Views 187
- Downloads 0
Impact of Industrial Revolution 4.0 (IR4.0) Knowledge, Application Learning, University Policy, Commitment to Study and Motivation on Assimilate IR4.0 in Education
The fourth Industrial Revolution (IR4.0) involving automation technology is a new challenge to various sectors and is able to make changes along with digital transformation to remain competitive. The development of scien...
The Effect of Board Characteristics on the Disclosure of Islamic Social Reporting in Islamic Banks in Asia
This study aims to examine the disclosure of Islamic social reporting in Islamic banks that publish annual reports and are listed on the stock exchange of each country in Asia. This study focuses on Islamic banks that ar...
Evaluation of the Commitment with Industrial Cleaning Service Firms of Workers
My study aims to analyze and assess the commitment with industrial cleaning service firms of workers, to bring comprehensive insight about organization of the personnel department in firms. The evaluation was carried out...
The Role of Digital Entrepreneurial Strategy in the Digital Transformation of MSMEs during the Covid-19 Pandemic
The purpose of this study is to develop a digital transformation model for MSMEs by analyzing absorptive capacity and digital entrepreneurial strategy in encouraging digital transformation in MSMEs. The research was cond...
The Role of Gender and Education on Entrepreneurship Performance: The Case of Kenya's Micro and Small Businesses
Although it is believed that entrepreneurship is the main driver of economic growth, it is basically a value-driven activity, and personal values appeared to have a significant impact on both the decision to pursue entre...