Aim: This paper aims to assess whether technological changes and resource availability are the primary drivers of business cycles, as suggested by the Real Business Cycle (RBC) theory, and propose a suitable monetary policy response to shocks. If business cycles are a result of technological changes and the availability of resources, monetary management is often not desirable. Methodology: The authors developed a standard RBC model from the class of DSGE models and then extended it by incorporating capital utilisation to enhance the model’s realism. A step-by-step derivation of the model's equilibrium conditions is also presented, whilst the model was calibrated using US data and solved in Matlab and Dynare. Results: The results showed that the inclusion of capital utilisation substantially amplified the impact of productivity shocks, so that even a relatively small total factor productivity shock generated realistic fluctuations in output. Implications and recommendations: The findings suggest that monetary and fiscal authorities have limited scope to smooth fluctuations arising from supply shocks, and that excessive policy intervention may be counterproductive. Therefore, RBC models could serve as a useful tool for policymakers as it shows that government and monetary management are often not desirable. Future research could enrich the model through labour market heterogeneity, investment frictions, and open economy features. Originality/value: The results are in contrast with the conclusions of earlier literature, which typically found that only large technology shocks are capable of producing such dynamics. The main added value of the paper results from the extension of the standard RBC framework through the incorporation of capital utilisation.
Aim: According to OECD, the financial well-being score for Poles is just 9.1 out of a total of 20, whilst the Eurostat reports one of the lowest scores for Polish society. Most of the previous research primarily relied on cross-sectional data. The aim of this study is to provide insights into the income perception of Polish families and its evolution over a 15-year period, using data from a Polish national longitudinal survey. Methodology: Taking specification of the Social Diagnosis data, the author adopted a mixture of latent autoregressive models. As a result, the study accounted for the unobserved heterogeneity and provided the mean and correlation coefficient for each component of the mixture, as well as described the effect of the observed covariates. Results: The author identified groups (three mixture components) of families with a similar perception of their financial situation, showing that some families (i.e. one-parent families, multi-families) and those with more children, living in suburbs, and those professionally inactive, are in particular need of greater protection. Implications and recommendations: There is a limited number of well-rounded financial education programmes that target socio-economic groups other than children and young people in Poland. The author believes that considering subjective information about income evaluation may also help to better recognise the specific financial education needs of people in different stages of life, characterised by various socio-economic features. The main limitation of the study concerns the availability of the most recent data (new waves of the survey are not published any more), therefore future research could assess the material condition of Polish families and compare the results based on other sources of data. Originality/value: The article present a new approach to the study of the economic perception of Polish families, and deals with the problem of the unobserved heterogeneity. This approach also allows to account for observable (socio-economic) characteristics and survey weights. Moreover, the author compared the results for the presented approach with the other latent variable model techniques.
Aim: The aim of the article was to assess the diffusion of wind energy and to identify the socio-economic factors determining the rate of this diffusion. Methodology: A logistic model was used to analyse the diffusion of wind energy, while the econometric Error Correction Model (ECM) was used to study the impact of socio-economic factors on the rate of diffusion. Results: In most of the surveyed countries the most important variable influencing the speed of diffusion of wind technology innovations were energy prices, followed by electricity consumption per capita, whereas the least important variable was number of researchers in R&D. The number of patents and R&D expenditure were relatively more often a statistically significant determinant of the diffusion of innovation among the old EU member states than among the member states from Central and Eastern Europe. Implications and recommendations: The innovation of the wind energy sector in some countries is insufficient and requires appropriate stimulation. This can be achieved by, among others, increasing investment outlays on research and development in the renewable energy sector, and developing offshore energy, which is much more effective than onshore wind farms. Originality/value: The article presents an original comparative analysis of the diffusion of wind energy in EU countries, and using ECM models, the factors determining the dynamics of this diffusion were identified. The results bring added value in terms of economic and political research in the wind energy sector.
Aim: This paper aims to investigate the impact of digitalisation and city development on the economic growth of developing countries in the context of narrowing the digital divide and the significance of digital skills in various economic sectors, particularly in light of the 'servitisation' trend. Methodology: The study employs empirical analysis using data from the OECD Creditor Reporting System (CRS) database to examine the effects of Official Development Assistance allocated for digital infrastructure and urban/rural development. The analysis includes regression models to test the relationship between ODA, digitalisation, and economic growth while controlling for factors such as the youth population ratio and urbanisation. Results: The results indicate that increasing per-capita ODA for digital infrastructure and city development is associated with a significant increase in annual economic growth of the recipient country. Specifically, doubling the amount of ODA received for these purposes is associated with a 0.3 percentage point increase in economic growth, even after controlling for various factors such as digitalisation levels and urbanisation. Implications and recommendations: The findings suggest that investing in digital infrastructure alongside city development projects can significantly contribute to economic growth in developing countries. Policymakers are urged to prioritise investments in digital infrastructure and city development to bridge the digital divide, promote inclusive growth, and address the challenges exacerbated by the Covid-19 pandemic. Originality/value: This research contributes to the literature by highlighting the importance of digitalisation and city development in fostering economic growth in developing countries, particularly in the post-pandemic era. It underlines the potential of Official Development Assistance to drive positive economic changes through strategic investments in digital infrastructure and urban development.
Aim: The aim of the paper was to assess the pure influence of the most fundamental socio-economic and socio-demographic factors on severe material and social deprivation (SMSD) in Poland, identify population groups at risk of SMSD and compare the results between 2019 and 2022. Methodology: The research was based on binomial logit models, associated marginal means and their estimation and contrast analysis. Results: The paper revealed that, compared to 2019, the risk groups for SMSD in Poland did not change in 2022. However, the threat of SMSD significantly increased for the most vulnerable groups (unemployed, disabled, low-educated persons, persons with poor health, unmarried persons). If a person belonged to multiple risk groups according to various relevant factors, a negative synergistic effect was observed in both years, with this effect being much greater in 2022. Implications and recommendations: The results suggest that the recent crises (health, energy, inflation) in the early 2020s have caused a significant increase in the probability of SMSD for risk groups in the Polish population. Further research will be needed to confirm the causality between the increased risk of SMSD and the crises. Originality/value: The use of marginal means analysis and contrast analysis in the field of poverty and social exclusion is original. Through these sophisticated statistical procedures, the paper provides an in-depth analysis of the differences in the probability of SMSD between different categories of relevant factors during the years considered.
Aim: The objective of this work was to evaluate the applicability of the Environmental Kuznets Curve (EKC) in the Ecuadorian context Methodology: An econometric analysis was carried out using the ARDL model to assess its validity in the Ecuadorian context, identifying significant relationships between economic growth and environmental degradation in the short and long term. This approach made it possible to examine the temporal dynamics between variables, revealing possible causal effects and providing an empirical basis for sustainable policymaking Results: The results indicate that Ecuador exhibits a nonlinear long-term relationship between economic growth and CO, emissions consistent with the Environmental Kuznets Curve. In the long run, economic growth and energy consumption are significant determinants of environmental degradation, while institutional quality does not play a structural role. In the short run, emissions dynamics are driven mainly by changes in energy consumption and institutional conditions, highlighting the importance of energy dependence and governance factors in shaping environmental outcomes. Implications and recommendations: This study highlighted the need to adopt comprehensive strategies that foster sustainable growth by transitioning to renewable energy sources, implementing cleaner technologies, and strengthening environmental legislation. Originality/value: The relationship between economic growth and environmental degradation has been extensively studied using the Environmental Kuznets Curve (EKC), however this article focused specifically on Ecuador, which constitutes an original contribution by applying a dynamic ARDL model with national data. The study provided novel empirical evidence in a country characterised by its high environmental diversity and structural challenges, demonstrating that, even within Latin America, Ecuador presents unique patterns that warrant a specific analysis.
Aim: This article presents the results of an empirical study relating to the impact of implemented innovations by 3PL operators and 4PL logistics integrators on the efficiency of supply chain logistics service. Methodology: In the methodological layer, for the empirical research it was necessary to carry out a literature review, conducted using the procedure proposed by Tranfield, Denyer and Smart (2003). As shown in the review, the issue of innovation and innovativeness in supply chain logistics service provided by Logistics Service Providers has been addressed in the literature by many researchers, nevertheless often from different and even dissimilar perspectives. Hence, based on the literature review and the identified research gaps, an empirical study (quantitative survey, using Partial Least Squares (PLS) path modelling) carried out at a further stage with the main aim of identifying the impact of innovations implemented by Logistics Service Providers on the efficiency of supply chain logistics service. The survey was conducted among Logistics Service Providers (3PL, 4PL) operating in Poland. Results: The research results showed, among other things, a strong impact of innovativeness of Logistics Service Providers on the efficiency of implemented logistics service of supply chains, which corresponds to the results of previous studies by other authors, including Grawe et al. (2015), and Bellingkrodt & Wallenburg (2013). Implications and recommendations: The results of the research can be used to improve the activities of companies in the logistics services industry that wish to implement innovation and offer more advanced services. Originality/value: The presented issues and conclusions from the conducted research can be treated as a voice in the discussion and an attempt to integrate previous literature studies, and therefore knowledge and research practice on the subject of innovations and innovative solutions implemented by 3PL operators and 4PL logistics integrators and their impact on the efficiency of the realised logistics service of supply chains. The article also identifies limitations and directions for further research.
Aim: The aim of this research was to examine the impact of renewable energy consumption (RE), technological innovation (TI), urbanisation (UR), and trade (TR) on carbon dioxide emissions (CE) in Pakistan, utilising an asymmetric (NARDL) approach to understand the dynamics of these factors in influencing environmental quality. Methodology: The study employed the asymmetric Nonlinear Autoregressive Distributed Lag (NARDL) approach to analyse the relationship between energy consumption, urbanisation, technological innovation, trade, and carbon emissions in Pakistan. Additionally, the robustness of the results was verified using the Robust Least Squares (RLS) and Generalised Method of Moments (GMM) techniques to assess the persistence of the variables over time. Results: The study found that renewable energy consumption and urbanisation had a negative impact on environmental quality, both in the short and long term. Technological innovation, on the other hand, had a positive impact on environmental quality in the short and long-run estimations. However, the results from robust least squares and GMM analysis indicated that renewable energy use, urbanisation, and trade negatively impacted environmental quality, while technological innovation emerged as a significant factor for improvement. Implications and recommendations: The findings suggest that while renewable energy use and urbanisation contribute negatively to environmental quality, technological innovation can help mitigate these adverse effects. Policymakers should focus on creating favourable legislation that promotes the adoption of green technologies and renewable energy sources. Encouraging further advancements in technological innovation in the green energy sector is crucial for achieving environmental sustainability in Pakistan. Originality/Value: This study provides valuable insights into the role of renewable energy, technological innovation, urbanisation, and trade in shaping carbon emissions in Pakistan, using an innovative asymmetric modelling approach. The research contributed to the literature on environmental economics by emphasising the importance of technology and energy consumption in the fight against global warming.
Aim:This study investigatedthe indirect effect of sustainable leadership (SL) on employees' eco-friendly innovative behaviour (EIB) through green knowledge sharing (GKS). It also examinedwhether leaders' green awareness (GA) amplifies the main effect of SL on GKS.Methodology: Grounded in social learning theory and social exchange theory, data were collected from 283 employees working in Malaysian manufacturing SMEs through a cross-sectional survey. Partial least squares structural equation modelling (PLS-SEM) was employed to test the hypotheses.Results: The results reveal that SL does not directly predict EIB. Instead, GKS serves as a significant mediator between SL and EIB. Furthermore, GA does not moderate the relationship between SL and GKS.Implications and recommendations: These findings highlightedthe critical role of knowledge-sharing practices in enabling eco-friendly innovation within SMEs. Managers should prioritise fostering green knowledgesharing rather than relying solely on leadership style. Future studies shouldexplore cultural contingencies and alternative moderating variables that may strengthen the SL-EIB relationship.Originality/value: This research contributes to green innovation theory by integrating two theoretical perspectives, testing a novel moderated-mediation framework, and examining the role of SL, GKS, and GA in a Malaysian SME context. It offers valuable insights into how leadership practices translate-or fail to do so-into employees' eco-innovation
Aim: The goal of this research was to investigate the impact of the circular economy on the sustainable development of EU countries. Methodology: The sample consisted of data from 27 EU countries, including eight selected circular economy indicators as independent variables and the Sustainable Development Goals index (SDG) as the dependent variable, covering the period from 2012 to 2021. Panel regression modelling was used to evaluate the impact of selected circular economy indicators on sustainable development. Results: The findings of this research demonstrate that reducing greenhouse gas emissions, increasing the circular material use rate, raw material consumption, and the recycling rate of municipal waste have a positive impact on the SDGI of EU countries. Implications and recommendations: CE serves as a tool for a long-term sustainability strategy, ensuring that all the countries, and by understanding its role, policymakers can implement more effective measures that foster economic resilience, environmental protection, and social equity. Originality/value: Although the circular economy and sustainability are gaining popularity in research, they are often examined separately, with limited discourse connecting the two. The study addressed this gap by investigating the impact of the circular economy on the sustainable development of EU countries, offering new insights into their interrelation.
Aim: This study aimed to examine organizational commitment in the tourism industry, especially after the COVID-19 pandemic and explored the influence of transformational leadership, organizational culture, psychological empowerment, and organizational commitment. The authors also tested and explained the role of organizational culture and psychological empowerment as mediating variables. Methodology: A quantitative approach was used, with 284 questionnaires obtained from 74 tourism businesses in Bali, Indonesia. The data were analysed using the Smart PLS 3.0 app. Results: The results showed that transformational leadership has no significant effect on employee commitment. Organizational culture and psychological empowerment mediate the relationships between transformational leadership and employee commitment. Implications and recommendations: The study analysed employee commitment to the tourism business during the accelerated recovery of the tourism sector. This presents challenges, namely unstable income levels and increasingly fierce competition that organizations must face, testing employee commitment. Originality/value: The article provides the basis for increasing employee commitment. Studies regarding the post-pandemic impact of COVID-19 have been carried out comprehensively, however research focused on increasing employee commitment to the tourism business is still needed.
Aim: In the digital era, enterprises are transitioning towards more efficient and adaptable models of production and service delivery, precipitating a shift in labour demands, which has engendered a reliance on technological solutions over human labour, resulting in the obsolescence of certain traditional roles and at the same time, the genesis of novel employment prospects. This study examined the fundamental nexus between enterprise evolution and workforce employment in the digital age, scrutinising the repercussions of such transitions on job opportunities and the requisite skill sets for workers. Methodology: Utilising data from China’s A-share listed companies spanning 2007-2022 and grounded in extant literature on digital enterprise transformation and labour employment, the research applied a benchmark regression model and regression analysis. Results: The findings shows that digital transformation within enterprises exerts a profound influence on the magnitude and composition of labour force. There was a discernible employment generation effect for personnel with high, medium, technical, and service-oriented skills, whereas a substitution effect was observed for lower-skilled and production-centric roles. The impact of enterprise digital transformation on employment is manifested through various channels, including market size, business domain, and production efficiency. Furthermore, the study revealed heterogeneity in employment effects across enterprises with differing scientific and technological characteristics and geographical locations, with digital transformation in high-tech sectors and central and western regions demonstrating a more pronounced facilitation of workforce employment. Implications and recommendations: The insights gained from this research offer valuable implications for corporate governance and policy formulation. Managers are urged to anticipate changes and facilitate employee skill enhancement through training and re-education, thereby aligning with emergent occupational paradigms. A reevaluation and recalibration of human resource management strategies are imperative, alongside the establishment of incentive and welfare systems that attract and retain talent. Originality/value: Policymakers should devise pertinent regulations and invest in digital education initiatives, thereby empowering citizens to elevate their digital competencies.
Aim: According to OECD, the financial well-being score for Poles is just 9.1 out of a total of 20, whilst the Eurostat reports one of the lowest scores for Polish society. Most of the previous research primarily relied on cross-sectional data. The aim of this study is to provide insights into the income perception of Polish families and its evolution over a 15-year period, using data from a Polish national longitudinal survey. Methodology: Taking specification of the Social Diagnosis data, the author adopted a mixture of latent autoregressive models. As a result, the study accounted for the unobserved heterogeneity and provided the mean and correlation coefficient for each component of the mixture, as well as described the effect of the observed covariates. Results: The author identified groups (three mixture components) of families with a similar perception of their financial situation, showing that some families (i.e. one-parent families, multi-families) and those with more children, living in suburbs, and those professionally inactive, are in particular need of greater protection. Implications and recommendations: There is a limited number of well-rounded financial education programmes that target socio-economic groups other than children and young people in Poland. The author believes that considering subjective information about income evaluation may also help to better recognise the specific financial education needs of people in different stages of life, characterised by various socio-economic features. The main limitation of the study concerns the availability of the most recent data (new waves of the survey are not published any more), therefore future research could assess the material condition of Polish families and compare the results based on other sources of data. Originality/value:The articlepresent a new approach to the study of the economic perception of Polish families,and dealswith the problem ofthe unobserved heterogeneity. Thisapproach also allows to account for observable (socio-economic) characteristics and survey weights.Moreover, the authorcomparedthe results for the presented approach with the other latent variable model techniques
Aim: Employees and customers alike can benefit from internal brand management initiatives that encourage exemplary behaviour towards the brand. Examining its impact on brand citizenship behaviour (BCB) is important since dedicated employees are an important resource for any organization. This study explored the theories of internal brand management and brand citizenship behaviour and their impacts on customer satisfaction and customer citizenship behaviour. Methodology: The results from several levels are presented in this multi-level analysis using data on 204 employees and 328 customers from three well-known banks in Cameroon. The interrelationships between these concepts were examined with the support of structural equation modelling and multi-level analysis. Results: Out of the seven propositions, except for the fifth, and seventh, all proved correct and were confirmed. The findings showed that internal brand communication positively affected both employee brand commitment and IBM's relationship with employee brand citizenship behaviour. Additionally, customer-level studies show that brand citizenship behaviour correlates favourably with customer satisfaction and positively but not significantly with customer citizenship behaviour. Implications and recommendations: This research reveal that internal branding management is important for achieving outcomes such as customer citizenship behaviour (CCB) and brand citizenship behaviour (BCB) among banking sector employees and customers, which is useful information for management. Furthermore, executives in the banking industry should prioritise internal branding management and work to strengthen it. Finally, it is well known that satisfied customers are more likely to be loyal to the brand, and this study's results lend credence to the idea that internal brand management initiatives can help foster brand citizenship behaviour. Originality/value: The study applied a multi-level view of customer satisfaction and used an original framework that included the following aspects: conception, measurement, and explanatory impact of the effectiveness of internal brand management, and brand and customer citizenship behaviour.
Aim: This paper focuses on the impact of transport infrastructure investment on the economic growth of European countries, with a particular emphasis on analysing the effects of investment in both road and railway infrastructure in the first two decades of this century. The primary objective was to empirically test whether greater trade openness amplifies the positive effects of investment in transport infrastructure on economic growth. Methodology: The panel data analysis approach was employed for its numerous advantages over time-series or cross-section analyses, encompassing a sample of 19 European countries from 2001 to 2021. Following the results of the applied econometric tests, models were estimated using generalised least squares (GLS) and ordinary least squares with panel-corrected standard errors (PCSE) methods. Results: The results revealed the positive impact of transport infrastructure investment on economic growth, with a pronounced significance associated with rail infrastructure investment, especially in the most developed countries. Road infrastructure investment only exhibited a positive impact in transition countries. Crucially, the analysis determined that the positive effects of investing in transport infrastructure on economic growth intensified with increasing trade openness. Implications and recommendations: The implications of the findings suggest that transport infrastructure investment alone is insufficient to drive economic growth. Other conditions must also be satisfied, particularly the economic integration of the country. Consequently, alongside transport infrastructure investment, it is essential to foster high levels of trade openness to ensure significant positive effects on the economy. Future research should further explore the significance of additional enabling conditions, such as a well-educated workforce and improved institutional environments, in facilitating and enhancing the positive effects of transport infrastructure investment. Originality/value: Given that the most significant investment in developing high-quality transport infrastructure within the European Union took place in the two first decades of this century, this research offers valuable insights through its empirical analysis of this period, deepening the understanding of the relationship between transport infrastructure investment and economic growth in Europe. The study's value lies in identifying the particularly strong positive impact of investing in rail infrastructure in the most developed countries, alongside the positive influence of investing in road infrastructure, especially in transition countries where motorways comprise the largest share of investment projects. The originality of this research largely stems from its quantitative verification that increased trade openness enhances the positive effects of investing in transport infrastructure on economic growth.
Aim: This study investigated the gender wage gap across occupational groups in Pakistan differentiated by their skill level. The author intended to explore how wage disparities between men and women vary across low, average, high, and very high-skilled occupations and examines the presence of structural barriers such as the glass ceiling. Methodology: The study utilised nationally representative microdata from the Pakistan Labour Force Survey (2020-2021) and applied Oaxaca-Blinder decomposition techniques along with unconditional quantile regression models. Results: The empirical findings indicate that women earn significantly lower wages in low and average-skilled occupations compared to their male counterparts. Conversely, women attain wage parity or enjoy a relative advantage in high and very high-skilled occupations. Nonetheless, evidence of glass ceiling effects persists in low, average, and very high-skilled groups, suggesting that human capital differences alone do not fully explain gender-based wage disparities. Implications and recommendations: A multi-pronged approach is necessary to reduce the gender wage gap. Policymakers should strengthen labour market regulations, raise minimum wages, enforce equal pay legislation, and promote gender-inclusive work environments. Encouraging women's participation in high-skilled occupations through targeted training, mentorship, and flexible work arrangements is essential for sustained wage equality. Originality/Value: This study makes a novel contribution by examining gender wage disparities across occupational skill levels in a developing country using recent data. It also offers disaggregated insights beyond aggregate wage gap estimates, providing actionable evidence for policymakers addressing gender inequality in labour markets across the Global South.
The paper discusses the key developments in the area of economic sciences. The insights are derived from the analysis of the achievements of the laureates of the prize in economic sciences in memory of Alfred Nobel.
Aim: This paper investigates how market power has evolved in the EU banking sector during a period of unconventional monetary policy, particularly under negative interest rates. Methodology: The author estimated an adjusted Lerner index through stochastic frontier analysis applied to an unbalanced panel of 272 EU commercial banks from 2015 to 2019, accounting for contextual factors including monetary policy stance, financial system development and regulatory environment. Results: The findings show that the traditional Lerner index overstated market power in EMU countries due to near-zero interest rates. The adjusted index reveals lower market power in EMU banks and consistently higher levels in non-EMU countries, especially the UK and the Nordic countries. Implications and recommendations: The findings emphasise the need to consider monetary policy and institutional factors in competition analysis. Future research should explore how banks adjust pricing under persistent low-rate environments. Originality/value: This paper offers a refined measure of bank market power that corrects for biases in standard metrics during periods of unconventional monetary policy, enhancing cross-country comparability within the EU.
Aim: Since the J-and S-curve concepts were first introduced, several researchers have tried to test their validity through empirical research. To offer recommendations for additional research, this study looked at the relevant literature. Methodology: The idea of the S-curve is an extension of the J-curve, which shows how the trade balance improves over time despite initially being worse due to currency depreciation. According to the S-curve hypothesis, there is a positive cross-correlation between the current exchange rate and the future trade balance of a country, and a negative cross-correlation between the current exchange rate and the past trade balance. To understand the pattern of the relationships, the author considered time series data for fifteen 3-digit industries/commodities between Pakistan and its main trading partners-China and the USA-from 1980 to 2022. Results: The results demonstrate that the minority of Pakistani industries, engaged in trade with the USA and China, supported J and S-curves behaviour. Implications and recommendations: The study showed that improving the trade balance is not always possible with domestic currency devaluation. Originality/Value: This study made an incremental contribution in that it critiqued a consumer price index (CPI) which has been used in literature on the aggregate level, and constructed commodity-based CPI for the analysis.
Aim: This paper aims to explore the role of visa liberalisation in promoting tourism flows by quantifying the effects of changes in visa regimes. Methodology: The author focused on Serbia studied in the period between 2006 and 2019, which represents an interesting case as Serbia increased then its integration efforts, opening its economy and changing the visa regime toward numerous countries, providing an opportunity of identifying the effects of visa liberalisation. An extended gravity model was estimated using a sample of travel services exports from Serbia to its 188 partner economies in the aforesaid period employing the Poisson pseudo-maximum likelihood estimators. Results: It was found that visa liberalisation had a statistically significant positive effect on travel services exports. Moreover, the effect was more pronounced for exports to geographically more distant and higher-income economies. Implications and recommendations: The study revealed interesting patterns of travel services exports and their determinants which could have useful implications for policymakers. For instance, the results implied that travel services exports could be significantly increased by liberalising the visa regime towards high potential market economies. The study also pointed to the price sensitivity of tourists visiting Serbia and shed light on the effects of cultural factors on tourism flows. Originality/value: This research innovatively applied the gravity model to analyse travel services exports, filling a notable gap in tourism studies. By focusing on a previously unexplored research sample, in particular on the economy undergoing significant visa liberalisation changes, the study provided a nuanced understanding of the relationship between policy shifts and tourism dynamics. This approach contributes to the adaptability of the gravity framework of international trade in the context of tourism economics and offers valuable insights for policymakers.
