The impact of major tourist markets on health tourism spending in the United States

This study investigates the impact of key inbound visitor markets on health tourism spending in the United States (US), for the period 1986–2016. Although there is a wealth of studies on health tourism, the emphasis on inferential research has inadvertently been neglected. The research uses secondary data and considers both short- and long-term perspectives, and volume and price effects. It enriches the literature by providing an inferential research approach, using a dynamic microeconomic elasticity scheme, and by providing new propositions that can contribute to the theory-building process. The methodology involves data decomposition and standardization, unit root testing, and instrumental variable regression. The results show that overall health spending in the US is primarily being affected by the long-term variations in several inbound visitor markets. This insight could benefit the pursuit of a competitive edge.