Research Article
How Much Does Trade Activities Improve International Tourism Demand? Evidence from Indonesia
@INPROCEEDINGS{10.4108/eai.5-8-2020.2301170, author={Adi Mahendra Darmawan and Muhammad Nabiel Arzyan and Muhammad Faiz Zaidan Alharkan and Akhmad Darmawan}, title={How Much Does Trade Activities Improve International Tourism Demand? Evidence from Indonesia}, proceedings={Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020, 5 - 6 August 2020, Purwokerto, Indonesia}, publisher={EAI}, proceedings_a={ICBAE}, year={2020}, month={10}, keywords={international tourism trade in value added international trade indonesia}, doi={10.4108/eai.5-8-2020.2301170} }- Adi Mahendra Darmawan
Muhammad Nabiel Arzyan
Muhammad Faiz Zaidan Alharkan
Akhmad Darmawan
Year: 2020
How Much Does Trade Activities Improve International Tourism Demand? Evidence from Indonesia
ICBAE
EAI
DOI: 10.4108/eai.5-8-2020.2301170
Abstract
This study aimed to investigate the relationship between international trade and international tourism demand in Indonesia. This research combined dataset of 31 countries from 2005-2015, and use the Generalized Method of Moments (GMM) estimation to take down the notions of endogeneity, heteroscedasticity, and serial correlation. Furthermore, this study tried to fill the literature gap from have not examined the comparison between two proxy of international trade data, conventional measure, and Trade in Value Added (TiVA), particularly in Indonesia. Based on the estimation, both indicators have a positive and significant relation with foreign tourist arrivals. Besides, we found that the TiVA measure was more potent than current data. These findings could be useful as complementary of government strategies in order to enhance the country trade as well as stimulate Indonesia’s inbound tourism.
