Visa restrictions and economic globalisation |
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| Affiliation: | 1. International Migration Institute (IMI), University of Oxford, Oxford, UK;2. Department of Geography & Environment, London School of Economics and Political Science (LSE), London, UK;1. Beijing Research Center for Information Technology in Agriculture, Beijing Academy of Agriculture and Forestry Sciences, Beijing 100097, China;2. National Engineering Research Center for Information Technology in Agriculture, Beijing 100097, China;3. Key Laboratory of Agri-informatics, Ministry of Agriculture, Beijing 100097, China;4. Beijing Engineering Research Center of Agricultural Internet of Things, Beijing 100097, China;1. University of Isfahan, Isfahan, Iran;2. Temple University, Philadelphia, USA;1. Guangdong Key Laboratory of Integrated Agro-environmental Pollution Control and Management, Guangdong Institute of Eco-Environmental Science and Technology, Guangzhou, 510650, China;2. School of Geographical Sciences, Guangzhou University, Guangzhou, 510006, China;1. Geography Research Unit, University of Oulu, P.O. Box 3000, 90014, Finland;2. Oulu Business School, University of Oulu, P.O. Box 3000, 90014, Finland;1. Department of Statistics, London School of Economics, London WC2A 2AE, UK;2. Applied Statistics Unit, Indian Statistical Institute, 203 Barrackpore Trunk Road, Kolkata 700 108, India;1. Department of Economics, University of Sussex, Brighton, BN1 9SL, United Kingdom;2. School of Economics, Drexel University, Philadelphia, PA 19104, USA;3. CESifo Research Network, Munich, Germany;4. Economic Research Institute, Bulgarian Academy of Sciences, Sofia, Bulgaria |
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| Abstract: | The cross-border mobility of people, goods and services, and capital has expanded enormously both in intensity and diversity over recent decades. States have a general interest in facilitating these flows in order to benefit from economic globalisation. Yet, mainly due to security concerns, most governments grant visa-free mobility only very selectively. Drawing on a new bilateral visa policy database covering up to 194 destination and 214 origin countries over the 1995 to 2013 period, our analysis finds that the introduction of a visa restriction by a destination country for citizens from a particular origin country deters tourism inflows by about 20 per cent. Visa restrictions also reduce bilateral trade and foreign investment, but to a smaller extent than previous studies have suggested. We further find that some of the deterred flows in tourists and goods and services are redirected to other (visa-free) destinations. This deterrence-cum-deflection effect of restrictive visa policies implies significant economic costs for both visa-issuing and visa-targeted countries, but it creates some positive externalities for countries with a more liberal visa policy. Liberalised visa policies would in particular help poorer countries to partake more in the benefits of economic globalisation. |
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| Keywords: | Visa restrictions Globalisation Spatial deflection Tourism Visitors Trade Foreign direct investment |
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