Do trade in environmental goods and remittances promote tourism development? New insights from RCEP countries

ABSTRACT

This study presents new perspectives by empirically examining the impact of trade in environmental goods and remittances on tourism development in RCEP countries over the period 1995-2021. We deployed the novel 2SIV-DPD model, the two-step system GMM and the D-K standard error approach. Results found new evidence that trade in environmental goods and remittances boost tourism development while economic growth hampers foreign tourism in RCEP countries. In addition, our results suggested that RCEP countries should bolster trade in environmental goods, improve infrastructure networks of transfer channels, and control price levels to achieve tourism development goals.

KEYWORDS:

• Novel 2SIV-DPD model
• tourism development
• trade in environmental goods
• remittances
• RCEP countries

Disclosure statement

No potential conflict of interest was reported by the author(s).