Export of Travel Services in Western Balkans: A Gravity Model Approach

Abstract

ABSTRACT This paper investigates the importance of travel service exports in Western Balkans countries. It identifies the key drivers and barriers in exporting travel services for five Western Balkan economies, in their intraregional trade and in trade in travel services with the EU. We use a gravity model, estimated over 2013–2019, applying the Poisson pseudo-maximum likelihood estimator. The results of the trade gravity model reveal that GDP, geographical distance, and cultural characteristics such as language and historical similarities and cultural heritage influence travel services.