THE IMPACT OF FACTORS ON THE NUMBER OF INTERNATIONAL TOURISTS TO VIETNAM: AN EMPIRICAL ANALYSIS USING THE GENERALIZED METHOD OF MOMENTS (GMM)

Abstract

Using the Generalized Method of Moments (GMM) to address endogeneity bias in panel data, this study estimates the factors influencing the number of international tourists to Vietnam during the period 2012–2023. The estimation results show that per capita income, spending capacity, the population size of tourists' home countries, bilateral exchange rates, bilateral trade, and the inflation rate of tourists' home countries have a positive and statistically significant impact on the number of international tourists to Vietnam. Notably, past tourist arrivals have a highly positive and significant effect, whereas geographical distance has a negative impact on international tourist arrivals to Vietnam. Based on these findings, the author proposes policy implications to enhance the attraction of international tourists to Vietnam in the future.