Tourism-Driven Economic Interactions: Evidence from a Transitional European Context

This paper investigates how inbound tourism influences globalisation dynamics in the Central and Eastern Europe region (CEE) considering digitalisation, trade openness, and economic growth. We applied panel data and regression analysis using indicators from World Bank, United Nations World Tourism Organization, and KOF Index for the period 1995-2023. Given the ongoing issues, particularly those stemming from digitalisation, trade openness and economic growth, we find it imperative to outline key factors influencing both present and future changes related to globalization under the inbound tourism effect. Results indicate that globalisation dynamics depends on inbound tourism without following a uniform pattern. Inbound tourism, trade openness and digitalisation contribute to the global market integration of the region, with statistically significant effects in five of nine countries. Digitalisation and economic expansion are key actors of globalisation. Although trade openness has an overall positive impact, export consolidation and urbanization process can steer the direction towards local market. Developing the incoming tourism provides an extra integration opportunity to the countries from the CEE region in global economy. Nevertheless, each country should work on maximizing their opportunities and enhancing their particular features since there is no such thing as a common regional model.