The Unassuming Economist

From a paper by Zheng Chris Cao:

“In recent years, international tourism has grappled with various impediments to cross-border activities triggered by geopolitical shifts. This study examines whether globalization is in retreat through the lens of international tourism. We employed spatial autoregressive models, in which several connectivity mechanisms are embedded, to analyze a global dataset of tourist flows. Our findings reveal that spatial dependence in tourism flows significantly weakened during the 2008 Global Financial Crisis and became increasingly driven by institutional factors, while the effects of trade links and geographical proximity diminished. This study contributes to the literature on tourism globalization by providing empirical evidence of the megatrends of deglobalization. For tourism firms operating under the assumption of ongoing globalization, these megatrends signal a significant change in the business environment. Firms should be prepared to reorient their market focus and reallocate their resources toward institutionally aligned regions in an evolving global landscape.”