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Table 2: Baseline regression



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Table 2: Baseline regression 

(Dependent variable: Tourist arrivals, 2004‐2017, logs) 

 

 

 



(1)

(2)


(3)

(4)


Full sample

Full sample

Balanced panel Balanced panel

GDP: Origin country (logs)

0.747***

0.859***


(0.0396)

(0.0481)


GDP: Destination country (logs)

0.577***


0.782***

(0.0350)


(0.0406)

Per capita GDP: Origin country (logs)

0.747***

0.859***


(0.0396)

(0.0481)


Per capita GDP: Destination country (logs)

0.577***


0.782***

(0.0350)


(0.0406)

Population: Origin country (logs)

‐0.363***

0.384***


‐0.300***

0.559***


(0.0728)

(0.0654)


(0.0889)

(0.0804)


Population: Destination country (logs)

‐0.759***

‐0.182**

‐0.784***

‐0.00151

(0.0776)


(0.0731)

(0.0986)


(0.0916)

Bilateral distance (logs)

‐1.338***

‐1.338***

‐1.279***

‐1.279***

(0.00589)

(0.00589)

(0.00758)

(0.00758)

Common border dummy

1.328***


1.328***

1.318***


1.318***

(0.0240)


(0.0240)

(0.0275)


(0.0275)

Common Language dummy

0.726***

0.726***


0.688***

0.688***


(0.00945)

(0.00945)

(0.0112)

(0.0112)


Common Free Trade Agreement dummy

0.589***


0.589***

0.468***


0.468***

(0.0104)


(0.0104)

(0.0123)


(0.0123)

Colonial relationship dummy

1.285***

1.285***


1.177***

1.177***


(0.0304)

(0.0304)


(0.0296)

(0.0296)


Bilateral real exchange rate (logs)

‐0.138***

‐0.138***

‐0.129***

‐0.129***

(0.0151)


(0.0151)

(0.0193)


(0.0193)

Remoteness: Destination country (logs)

‐0.253**

‐0.253**


0.0679

0.0679


(0.101)

(0.101)


(0.119)

(0.119)


Remoteness: Origin country (logs)

0.382***


0.382***

0.745***


0.745***

(0.0811)


(0.0811)

(0.0824)


(0.0824)

Constant


‐2.740

‐2.740


‐16.74***

‐16.74***

(1.810)

(1.810)


(2.088)

(2.088)


Observations

124,012


124,012

76,006


76,006

R‐squared

0.799

0.799


0.814

0.814


Country and year dummies included but not reported

Robust standard errors in parentheses

*** p<0.01, ** p<0.05, * p<0.1



 

Page 29 of 34 

 

Table 3: Year Interaction Coefficients 

(Dependent variable: Tourist arrivals, 2004‐2017, logs) 

 

 

(1)



(2)

(3)


(5)

INTERACTED 

REGRESSOR: Common Border

Common 


Language

Colonial 

Relationship

Common 


Border

Common 


Language

Colonial 

Relationship

Distance (log)

Year = 2005

‐0.00769


‐0.0170

‐0.0182


‐0.00136

‐0.0165


‐0.00990

0.00938


(0.128)

(0.0411)


(0.145)

(0.128)


(0.0414)

(0.146)


(0.0219)

Year = 2006

‐0.0534

‐0.0333


‐0.0228

‐0.0420


‐0.0296

‐0.00955


0.0221

(0.128)


(0.0408)

(0.142)


(0.128)

(0.0411)


(0.144)

(0.0218)


Year = 2007

‐0.0961


‐0.0426

‐0.0631


‐0.0831

‐0.0346


‐0.0492

0.0350


(0.128)

(0.0407)


(0.142)

(0.128)


(0.0410)

(0.143)


(0.0217)

Year = 2008

‐0.0728

‐0.0512


‐0.126

‐0.0567


‐0.0435

‐0.107


0.0451**

(0.128)


(0.0405)

(0.138)


(0.129)

(0.0408)


(0.140)

(0.0216)


Year = 2009

‐0.0217


‐0.0661

‐0.179


0.000691

‐0.0615


‐0.148

0.0300


(0.128)

(0.0403)


(0.144)

(0.128)


(0.0406)

(0.145)


(0.0214)

Year = 2010

‐0.0385

‐0.0877**

‐0.214

‐0.00862


‐0.0816**

‐0.173


0.0341

(0.127)


(0.0401)

(0.138)


(0.128)

(0.0404)


(0.140)

(0.0214)


Year = 2011

‐0.0211


‐0.0888**

‐0.230*


0.00960

‐0.0836**

‐0.186

0.0255


(0.129)

(0.0404)


(0.137)

(0.129)


(0.0407)

(0.139)


(0.0215)

Year = 2012

‐0.0159

‐0.110***

‐0.296**

0.0222


‐0.105**

‐0.241*


0.0169

(0.128)


(0.0404)

(0.140)


(0.129)

(0.0406)


(0.141)

(0.0215)


Year = 2013

‐0.0245


‐0.119***

‐0.317**


0.0162

‐0.112***

‐0.258*

0.0121


(0.128)

(0.0404)


(0.139)

(0.129)


(0.0407)

(0.140)


(0.0216)

Year = 2014

‐0.0416

‐0.121***

‐0.312**

‐0.000304

‐0.113***

‐0.252*


0.0188

(0.127)


(0.0406)

(0.141)


(0.128)

(0.0409)


(0.143)

(0.0216)


Year = 2015

‐0.0814


‐0.126***

‐0.331**


‐0.0399

‐0.114***

‐0.272*

0.0194


(0.128)

(0.0407)


(0.143)

(0.129)


(0.0410)

(0.145)


(0.0217)

Year = 2016

‐0.0877

‐0.129***

‐0.347**

‐0.0459


‐0.116***

‐0.288**


0.0235

(0.127)


(0.0411)

(0.143)


(0.128)

(0.0414)


(0.145)

(0.0218)


Year = 2017

‐0.111


‐0.170***

‐0.401***

‐0.0552

‐0.156***

‐0.322**

0.0230


(0.129)

(0.0414)


(0.147)

(0.130)


(0.0417)

(0.148)


(0.0220)

Observations

76,006

76,006


76,006

76,006


R‐squared

0.814


0.814

0.814


0.814

Sample: Balanced panel

Robust standard errors in parentheses

*** p<0.01, ** p<0.05, * p<0.1

(4)

76,006


0.814

Other regressors included but not reported: Per capita GDP, Population, Real exchange rate, Remoteness, Contiguity, Common language, 

Colonial relationship, Country and Year dummies.



 

Page 30 of 34 

 

Table 4(a): Digital Adoption – Internet Use 

(Dependent variable: Tourist arrivals, 2013, 2015, 2017, logs) 

 

 

 



(1)

(2)


(3)

(4)


(5)

(6)


Bilateral distance (logs)

‐1.289***

‐1.449***

‐1.269***

‐1.263***

‐1.289***

‐1.393***

(0.0173)


(0.0184)

(0.0173)


(0.0177)

(0.0173)


(0.0188)

Common border dummy

1.239***

1.195***


2.851***

1.241***


1.237***

2.457***


(0.0623)

(0.0606)


(0.121)

(0.0617)


(0.0623)

(0.123)


Common Language dummy

0.674***


0.690***

0.727***


0.981***

0.675***


1.084***

(0.0239)


(0.0237)

(0.0237)


(0.0493)

(0.0239)


(0.0493)

Colonial relationship dummy

1.181***

1.145***


1.148***

1.247***


0.750***

1.064***


(0.0534)

(0.0520)


(0.0533)

(0.0554)


(0.170)

(0.171)


PANEL A:  Interaction with (B2C Internet Use in Destination Country) x (Individual Internet Use in Origin Country)

   x Distance (logs)

0.0608***

0.0566***

(0.00283)

(0.00291)

   x Common border

‐0.0841***

‐0.0656***

(0.00520)

(0.00521)

   x Common Language

‐0.0121***

‐0.0140***

(0.00156)

(0.00155)

   x Colonial relationship

0.0126***

0.00393

(0.00452)

(0.00461)

Observations

17,922

17,922


17,922

17,922


17,922

17,922


R‐squared

0.830


0.835

0.835


0.831

0.830


0.839

Regressors included but not reported: Per capita GDP, Population, Real exchange rate, Remoteness, Country & Year dummies.

Sample: Balanced panel.

Robust standard errors in parentheses.

*** p<0.01, ** p<0.05, * p<0.1



 

Page 31 of 34 

 

Table 4(b): Digital Adoption – Internet Use 

(Dependent variable: Tourist arrivals, 2013, 2015, 2017, logs)

 

(7)


(8)

(9)


(10)

(11)


Bilateral distance (logs)

‐1.694***

‐1.277***

‐1.263***

‐1.288***

‐1.591***

(0.0328)

(0.0169)


(0.0174)

(0.0173)


(0.0329)

Common border dummy

1.208***

5.806***


1.283***

1.238***


4.971***

(0.0608)


(0.337)

(0.0607)


(0.0623)

(0.341)


Common Language dummy

0.681***


0.735***

2.010***


0.675***

1.631***


(0.0237)

(0.0237)


(0.122)

(0.0239)


(0.121)

Colonial relationship dummy

1.131***

1.151***


1.292***

0.382


0.655

(0.0529)


(0.0536)

(0.0549)


(0.439)

(0.456)


PANEL B:  Interaction with Individual Internet Use in Origin Country

   x Distance (logs)

0.303***

0.258***


(0.0217)

(0.0218)


   x Common border

‐2.129***

‐1.531***

(0.272)


(0.273)

   x Common Language

‐0.882***

‐0.707***

(0.0763)

(0.0763)


   x Colonial relationship

0.599**


0.643**

(0.293)


(0.295)

PANEL C:  Interaction with B2C Internet Use in Destination Country 

   x Distance (logs)

0.0441***

0.0346***

(0.00519)

(0.00515)

   x Common border

‐0.696***

‐0.593***

(0.0859)


(0.0859)

   x Common Language

‐0.162***

‐0.0948***

(0.0221)

(0.0220)


   x Colonial relationship

0.0657


0.00877

(0.0591)


(0.0617)

Observations

17,922

17,922


17,922

17,922


17,922

R‐squared

0.834

0.837


0.833

0.830


0.840

Sample: Balanced panel.

Robust standard errors in parentheses.

*** p<0.01, ** p<0.05, * p<0.1

Regressors included but not reported: Per capita GDP, Population, Real exchange rate, Remoteness, Country & Year 

dummies.



 

Page 32 of 34 

 

Table 5: Digital Adoption – Google Trends Proxy 

(Dependent variable: Tourist arrivals, 2004‐2017, logs) 

 

 

(1)



(2)

(3)


(4)

(5)


(6)

(7)


(8)

(9)


(10)

(11)


(12)

(13)


(14)

(15)


(16)

Bilateral distance (logs)

‐1.278***

‐1.277***

‐1.277***

‐1.277***

‐1.277***

‐1.276***

‐1.277***

‐1.276***

‐1.277***

‐1.276***

‐1.277***

‐1.276***

‐1.280***

‐1.277***

‐1.279***

‐1.280***

(0.00757)

(0.00758)

(0.00758)

(0.00756)

(0.00758)

(0.00758)

(0.00758)

(0.00758)

(0.00756)

(0.00758)

(0.00758)

(0.00756)

(0.00758)

(0.00758)

(0.00758)

(0.00756)

Common border dummy

1.414***


1.316***

1.318***


1.400***

1.388***


1.317***

1.318***


1.379***

1.433***


1.315***

1.318***


1.414***

1.318***


1.319***

1.318***


1.408***

(0.0298)


(0.0275)

(0.0275)


(0.0299)

(0.0294)


(0.0275)

(0.0275)


(0.0295)

(0.0304)


(0.0275)

(0.0275)


(0.0304)

(0.0275)


(0.0275)

(0.0275)


(0.0304)

Common Language dummy

0.691***

0.730***


0.688***

0.723***


0.690***

0.716***


0.688***

0.712***


0.692***

0.748***


0.688***

0.738***


0.688***

0.688***


0.688***

0.751***


(0.0112)

(0.0124)


(0.0112)

(0.0124)


(0.0112)

(0.0122)


(0.0112)

(0.0122)


(0.0112)

(0.0130)


(0.0112)

(0.0130)


(0.0112)

(0.0112)


(0.0112)

(0.0133)


Colonial relationship dummy

1.171***


1.201***

1.152***


1.125***

1.175***


1.177***

1.150***


1.136***

1.171***


1.199***

1.129***


1.099***

1.174***


1.177***

1.175***


1.111***

(0.0296)


(0.0298)

(0.0460)


(0.0462)

(0.0295)


(0.0296)

(0.0364)


(0.0364)

(0.0295)


(0.0298)

(0.0486)


(0.0487)

(0.0295)


(0.0296)

(0.0296)


(0.0489)

PANEL A:  Interaction with high digital platform adoption ‐ Origin country:

   x Common border

‐0.575***

‐0.509***

‐0.493***

‐0.431***

‐0.434***

(0.0649)


(0.0656)

(0.0742)


(0.0749)

(0.0747)


   x Common Language

‐0.146***

‐0.110***

‐0.133***

‐0.102***

‐0.189***

(0.0157)

(0.0158)


(0.0159)

(0.0160)


(0.0175)

   x Colonial relationship

0.0400

0.106*


0.0355

0.0916


0.0882

(0.0553)


(0.0564)

(0.0559)


(0.0571)

(0.0571)


   x Distance (logs)

0.00997***

0.00993***

0.0191***

(0.00154)

(0.00154)

(0.00168)

PANEL B:  Interaction with high digital platform adoption ‐ Destination country:

   x Common border

‐0.391***

‐0.349***

‐0.187**

‐0.158**


‐0.139*

(0.0694)


(0.0699)

(0.0778)


(0.0784)

(0.0782)


   x Common Language

‐0.0935***

‐0.0702***

‐0.0706***

‐0.0552***

‐0.0168


(0.0158)

(0.0157)


(0.0160)

(0.0159)


(0.0176)

   x Colonial relationship

0.0783

0.120**


0.0761

0.102*


0.105*

(0.0552)


(0.0559)

(0.0556)


(0.0564)

(0.0564)


   x Distance (logs)

‐0.00596*** ‐0.00589*** ‐0.00497***

(0.00155)

(0.00155)

(0.00170)

Constant


‐17.31***

‐18.18***

‐17.03***

‐18.16***

‐17.41***

‐17.66***

‐17.05***

‐17.87***

‐17.45***

‐18.55***

‐17.05***

‐18.60***

‐18.05***

‐16.51***

‐17.53***

‐20.54***

(2.081)

(2.094)


(2.088)

(2.087)


(2.085)

(2.098)


(2.088)

(2.093)


(2.080)

(2.101)


(2.088)

(2.093)


(2.092)

(2.101)


(2.105)

(2.120)


Observations

75,880


75,880

75,880


75,880

75,880


75,880

75,880


75,880

75,880


75,880

75,880


75,880

75,880


75,880

75,880


75,880

R‐squared

0.815

0.814


0.814

0.815


0.814

0.814


0.814

0.814


0.815

0.814


0.814

0.815


0.814

0.814


0.814

0.815


Other regressors included but not reported: Per capita GDP, Population, Real exchange rate, Remoteness, Country and Year dummies.

Sample: Balanced panel.

Robust standard errors in parentheses.

*** p<0.01, ** p<0.05, * p<0.1




 

Page 33 of 34 

 

Table A.1: Adoption of digital travel tools 

(Google Trends Index)

 

 

Note: Author’s calculation using Google Trends search data of the terms “TripAdvisor”, “Booking.com”, “Travelocity”, 



“Expedia”, and “Orbitz”, over the period 2004‐2018. 

 

 



                                                   

                     Total    8.6  20.7  33.8  42.3

                             

        Sub-Saharan Africa    3.2  11.3  15.6  17.1

                South Asia   11.6  28.1  38.9  46.3

             North America   55.9  79.5  79.9  79.9

Middle East & North Africa    8.6  21.8  44.6  55.0

 Latin America & Caribbean   14.3  24.1  34.7  43.8

     Europe & Central Asia    6.1  20.0  40.1  55.4

       East Asia & Pacific    8.4  23.3  34.9  40.9

                                                   

                    REGION   2004  2010  2014  2018

                                      YEAR         

                                                   




 

Page 34 of 34 

 

 

Table A.2: Use of Digital Travel Sites in MENA 



(Index 0 ‐ 100) 

 

Note: Author’s calculation using Google Trends search data of the terms “TripAdvisor”, “Booking.com”, 

“Travelocity”, “Expedia”, and “Orbitz”, over the period 2004‐2018. 

 

                                             



               Total    8.6  21.8  44.6  55.0

                       

               Yemen    0.0   0.0   0.0   0.0

  West Bank and Gaza   34.8  59.3  59.3  59.3

United Arab Emirates    6.3  37.9  70.3  79.2

             Tunisia    3.5   4.7  18.3  50.8

Syrian Arab Republic   15.0  17.8  17.8  17.8

        Saudi Arabia    2.9  18.6  60.8  71.0

               Qatar   12.4  36.4  73.5  73.5

                Oman    6.0  23.9  63.7  68.8

             Morocco    2.8   8.1  21.7  50.2

               Malta    6.9  26.8  67.0  71.0

               Libya    3.6  10.8  39.2  39.2

             Lebanon   22.3  38.6  63.3  71.9

              Kuwait    6.8  28.3  69.5  69.5

              Jordan    8.0  15.4  34.0  65.5

              Israel    7.6  12.3  59.7  74.9

                Iraq    3.3  38.0  38.0  38.0

                Iran    9.6  20.8  38.3  55.8

               Egypt   12.8  12.8  36.0  58.6

            Djibouti    8.3  12.1  12.1  12.1

             Bahrain    7.5  27.3  59.1  68.8

             Algeria    1.1   7.7  35.5  58.3

                                             

             COUNTRY   2004  2010  2014  2018

                                YEAR         



                                             

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