Policy Effect and Mechanism of China’s MSRI on Inbound Tourism Along the Route

Abstract

ABSTRACT This paper adopted a difference-in-differences method and panel datasets were divided into 20 MSR countries and 60 non-MSR countries between 2010 and 2019 to identify the MSRI’s effects and mechanisms behind on inbound tourism. Results show that the MSRI had a significant and direct positive effect on inbound tourism among associated countries. Compared with the tourist arrivals (ITN), the positive effect on the inbound tourism revenue (ITR) was stronger. The MSRI increased these countries’ ITR and ITN by 27.4% and 15.0%. The positive effect on ITR demonstrated a fluctuating but rising trend. The MSRI had boosted inbound tourism by reducing social risk, enhancing infrastructure, and facilitating trade among associated countries. The MSRI had a higher inbound tourism promotion effect on countries in South Asia, West Asia and North Africa, high-income countries, lower-middle-income countries and countries with low tourism resource endowment.