The role of international tourism on foreign trade in the BRICS nations

Abstract

Does international tourism improve foreign trade in BRICS countries? A handful of empirical literature has attempted to answer this profound research question. However, the results of these studies are inconclusive. Thus, the aim of the study was to contribute to the scant empirical literature on international tourism and foreign trade by examining the impact of tourism on foreign trade in BRICS countries. To achieve this aim, the study employed the panel autoregressive distributive model (P-ARDL). The P-ARDL results reveal that tourists arrival, receipts from tourism exports and economic growth are significant and positively influence foreign trade. Noteworthy is that international tourism plays a significant role in the foreign trade. Thus, further assimilation and orchestrating of trade and tourism policies inside the BRICS members should be promoted.

Keywords

• tourism
• foreign trade
• panel autoregressive distributive lag
• BRICS