DETERMINANTS OF INTERNATIONAL-TRADE FLOWS IN TRAVEL AND PASSENGER SERVICES

In the past decade there has been a great increase in interest in trad e in services. This pager estimates the determinants of trade flows fo r two service industries travel and passenger transportation services, for 16 OECD countries. Traditional and more recent models of import d emand and demand far export functions are utilized The empirical resul ts indicate similarity between trade in goods and trade in services. P rice competitiveness is an important factor in determining the trade f lows in travel services and, like trade in manufactured goods, exchang e rate variations have some influence on the volume of travel and pass enger transportation services.