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 186
- Downloads 0
The Mediating Role of Locus of Control: The Effect of Work Discipline and Competence on Employee Performance
Using employees' sense of agency as a moderator, this research will look at how job competency and discipline affect productivity. Although competence and work discipline are both critical components of employee performa...
The Influence of Product Quality, Promotion, Trust, Convenience and Price on Purchasing Decisions with Brand Image as an Intervening Variable
Today's advanced age has the potential to change people's lives. Throughout these modern times, several technical developments have taken place, among which are software and data innovations. E-commerce has become a part...
An Analysis of the Derivatives Market Performance in Kenya: A Case of Nairobi Securities Exchange Derivatives Market
The growth of the financial derivatives market has been identified as a significant channel to drive the overall growth of the capital market, and the development of capital market efficiency has been widely regarded as...
Improvement of Craft Business: Business Learning and Market Orientation
Objectives - This study aims to test and prove empirically about: First, does business learning have a direct effect on market orientation? Second, whether business learning and market orientation have a direct effect on...
An Investigation of Public Participation on Policy Formulation in Devolved Government in Keiyo South Sub County, Elgeyo Marakwet County, Kenya
Citizens in many county governments are not empowered to understand their role in development issues and feel that policy makers do not put into consideration their contribution in major decision making particularly affe...