Table III.

Estimates of gravity models, system GMM

VariablesGeneral modelIntra-bloc modelExtra-bloc model
(1)(2)(3)
Log of tourist arrivals in t-10.6736*** (0.0692)0.4769***(0.0899)0.4983***(0.1054)
Log of the per capita GDP of country i2.7299 (9.5165)15.9446 (11.7459)−2.0156***(0.5273)
Log of the per capita GDP of country j0.4110*** (0.0938)0.1927 (0.2502)0.4389**(0.2196)
Log. of the population of country i−0.1092 (2.4892)2.0383 (3.0387)−0.3294 (0.4181)
Log. of the population of country j0.3779** (0.1640)3.4686***(0.6492)−0.3467 (0.3003)
Log. of bilateral real exchange rate0.1846*** (0.0567)−2.8232*(1.5363)−1.3054*(0.7034)
Log of the price of the competing countries (h)0.1129** (0.0512)3.0099**(1.3859)−1.5356**(0.7126)
Log. of the remoteness of i−0.9949*** (0.2433)−1.1259***(0.3729)4.2359**(2.0552)
Log. of the remoteness of j0.1888 (0.2051)0.7368**(0.3660)−7.4077***(2.6160)
Log of distance between i and j−0.3957** (0.1910)−15.5239***(3.5635)6.3354***(2.1307)
Constant3.7998 (8.8064)62.4616***(14.5272)−21.3039**(10.6362)
Fixed effects by country and bilateral relationYesYesYes
Effects by yearYesYesYes
Variables effects by countryYesYesYes
Observations575125161
Number of id281216
Sargan test18.6421.6012.80
p-value0.7220.3050.307
AR(1)13.824.1776.812
AR(1) p-value000
AR(2)2.0380.4340.708
AR(2) p-value0.0410.6640.479

Notes:

Standard errors in parentheses;

***

p < 0.01,

**

p < 0.05,

*

p < 0.1; Hansen test is an over identification test for instruments and AR are tests of autocorrelation

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