Regional Tourism Competition in the Baltic States: a Spatial Stochastic Frontier Approach

Pavlyuk, Dmitry (2010): Regional Tourism Competition in the Baltic States: a Spatial Stochastic Frontier Approach.

Abstract

This paper aimed at a statistical analysis of competition for tourists between regions within Baltic states (Estonia, Latvia, Lithuania) and estimation relative efficiency levels of regions. We apply a modern approach called Spatial Stochastic Frontier and corresponded to spatial modification of a stochastic frontier model. We specify two alternative spatial stochastic frontier models – distance and travel-time based to identify an influence of existing transport network on research results. Using the model we analyse region-specific factors (tourism infrastructure, employment, geographical position and natural attractors) having an effect on a number of visitors and estimate regions' efficiency values. We discover a significant level of inefficiency of Baltic states regions and propose some ways to improve the situation.

• Item Type: MPRA Paper
• Language: English
• Keywords: spatial stochastic frontier, efficiency, competition, regional tourism, transport network
• Subjects: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O18 - Urban, Rural, Regional, and Transportation Analysis ; Housing ; Infrastructure; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R15 - Econometric and Input-Output Models ; Other Models; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C31 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions ; Social Interaction Models; L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports ; Gambling ; Restaurants ; Recreation ; Tourism; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models

References

Hong W.-C. Competitiveness in the Tourism Sector. Heidelberg: Physica-Verlag, 2008. 133 p.

Ritchie J.R.B. and Crouch, G.I. The Competitive Destination: A Sustainability Perspective. CABI, 2003. 272 p.

Cracolici M.F. and Nijkamp P. Efficiency and Productivity of Italian Tourist Destinations: A Quantitative Estimation based on Data Envelopment Analysis and the Malmquist Method, Tinbergen Institute Discussion Papers, 06-096/3, 2006, 21 p.

Kumbhakar S. C. and Lovell C. A. K. Stochastic Frontier Analysis. Cambridge: Cambridge University Press, 2003. 333 p.

Johdrow J., Lovell C.A.K., Materov I.S., Schmidt P. On the Estimation of Technical Inefficiency in the Stochastic Frontier Production Function Model, Journal of Econometrics, №19, 1982, pp. 233-238.

Anselin L. Spatial Econometrics: Methods and Models. Dordrecht: Kluwer Academic Publishers, 1988. 284 p.

LeSage J.P. and Pace R.K. Introduction to Spatial Econometrics. Chapman and Hall/CRC, 2009. 374 p.

Tveteras R. and Battese G.E. Agglomeration Externalities, Productivity, and Technical Inefficiency, Journal of Regional Science, vol. 46(4), 2006, pp. 605-625.

Fujita M. and Thisse J.-F. Economics of Agglomeration: Cities, Industrial Location, and Regional Growth. Cambridge: Cambridge University Press, 2008. 480 p.

Upton G.J.G. and Fingleton B. Spatial Data Analysis by Example: Point Pattern and Quantitative Data. Chichester: John Wiley & Sons, 1985. 422 p.

Barrios E.B. and Lavado R.F. Spatial Stochastic Frontier Models, PIDS Discussion Paper Series, No. 2010-08, 2010, 25 p.