Services trade-ICT-tourism nexus in selected Asian countries: new evidence from panel data techniques

Consistent with the 2030 United Nations Sustainable Development Goal 8 (implement policies to promote sustainable tourism), 9 (provide infrastructure for universal and affordable access to the Internet), and 17 (promote international trade), this study interrogates the services trade-ICT nexus on sustainable tourism in Asia. Using an unbalanced panel data on 44 East Asia and Pacific and South Asian countries from 2010 to 2019 it probes the discourse using tourism receipts, trade in services, and four ICT indicators (mobile phones, Internet users, fixed broadband, and secured internet servers). In broader terms, this study addresses two questions: whether ICT usage and services trade individually impact tourism and if the interaction of ICT influences or erodes the impact of services trade on tourism? Deploying the PSCC-LSDV and MM-QR robustness techniques, findings reveal that (1) services trade and ICT individually promote tourism; (2) the negative interaction effect of services trade and ICT is not sufficient to erode the enhancing-impact of services trade; (3) effect of services trade and ICT usage and their interaction significantly differ across the sub-regions; and (4) effect of services trade and ICT usage is heterogeneous across the quantiles. Policy recommendations are discussed.

Automated summary

This study examines the relationship between services trade and information and communication technology in sustainable tourism in Asia. The research found that services trade and ICT individually promote tourism, and their interaction is not enough to erode the enhancing impact of services trade. Additionally, the effects of services trade and ICT usage vary significantly across sub-regions and quantiles.