Time-Varying Interactions Between US–China Political Relation, Flight Frequency, and Inbound Tourism

Abstract

This study investigates the dynamics among US–China political relations, flight frequency, and inbound tourism through the utilization of a time-varying parameter vector autoregression model. As political relations warm, there is a notable uptick in flight frequency between the two nations. Moreover, the rising flight frequency would further increase inbound tourists. Interestingly, our analysis reveals no substantial evidence supporting a significant impact of inbound tourists on either political relations or flight frequency. The study concludes with insightful policy implications drawn from these findings.