Virtual Water Trade in the Service Sector: China's Inbound Tourism as a Case Study

Virtual water flows and drivers in the international trade of agricultural products of the regional comprehensive economic partnership

The regional comprehensive economic partnership (RCEP) is today the largest free trade area in the world. This paper examines agricultural trade in the RCEP from 2010 to 2019 through the perspective of virtual water. And the drivers of the virtual water flow between China and the RCEP are also explored. The results are as follows: the virtual water flow during the study period was 2,576.51 billion m3. From a temporal perspective, the annual virtual water flow over the study period is characterized by a slow rise-significant fall-slow rise. It has the characteristics of concentration in spatial distribution and water resources and product structure. However, the concentration degree showed a downward trend during the study period. Then, we have divided the major trading into four categories based on whether there is a shortage of water on both sides of the trade. In terms of the drivers of virtual water flows between China and the RCEP, we have used the gravity model to arrive at the following findings: crop yields, bilateral economic scale, and agricultural labor resources are the main drivers. Our research results have reference values for adjusting bilateral agricultural trade and water conservation.

Does tourism development contribute to the green water-use efficiency of the Yellow River Basin in China?

The coordination between economic development as well as water resources conservation in ecologically fragile areas is the basis for achieving sustainable development in developing countries. Nonetheless, the existing literature pays little attention to such an issue. The purpose of this quantitative study is to explore the causal relationship between tourism development and green water-use efficiency in the Yellow River Basin (YRB) of China. The findings are as follows: (1) Tourism development can significantly enhance the green water-use efficiency in the YRB; For every 1% increase in tourism revenue, the green water-use efficiency will increase by 4.38%. (2) Tourism affects the green water-use efficiency by increasing the intensity of water pollution and decreasing the intensity of water use; For every 1% increase in tourism revenue, the green water-use efficiency will decrease by 0.2% and increase by 0.9% respectively by increasing the intensity of water pollution and decreasing the intensity of water use. (3) Strengthening environmental regulation and improving service facilities will further enhance the positive impact of tourism development; An increase of one standard deviation in the intensity of environmental regulation or one standard deviation in the level of service facilities will increase the impact of tourism on green water-use efficiency by 1.1% or 1.7%, respectively. The aforementioned findings provide enlightenment for effectively promoting the coordination between economic development and water resources protection in ecologically fragile areas of developing countries.

Research on the association of China-US virtual water trade based on hypothesis extraction method

Based on the EORA input-output tables from 2006 to 2016, this paper divided 189 countries in the world into three economies (China, the USA, and other countries) and used the hypothetical extraction method to calculate the virtual water trade volume of the three economies in the Sino-US bilateral trade. Combining with the analysis of the global value chain, the following conclusions were drawn: (1) the virtual water trade volume exported by China and the USA showed an overall increasing trend. The virtual water trade volume exported by the USA was far less than that of China, but more virtual water was transferred through trade. (2) Compared with intermediate products, China's virtual water exports of final products were larger, but the USA was the opposite. (3) Among the three major industrial sectors, the secondary sector was the largest virtual water export sector in China, but it was the primary sector in the USA that had the largest volume of. (4) Bilateral trade had brought environmental disadvantages to China, but this situation was gradually improving.