Dynamic Impacts of Income and the Exchange Rate on US Tourism, 1960–2011

Chi, Junwook

doi:10.5367/te.2014.0399

Cited by 22 publications

(15 citation statements)

References 20 publications

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“…Indeed, tourism demand has been found to be susceptible to exchange rate fluctuations. An appreciation of a destination’s currency influences the tourism sector adversely by decreasing tourist arrivals, length of stay, and tourist spending (Chi 2015; De Vita 2014; Demir and Gozgor 2018; Falk 2015; Stauvermann et al 2018). These have the combined effect of weakening the impact of tourism on economic growth.…”

Section: Resultsmentioning

confidence: 99%

Tourism and Economic Growth: A Meta-regression Analysis

Nunkoo

Seetanah

Jaffur

et al. 2019

Journal of Travel Research

148

112

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Numerous studies have focused on delineating the relationship between tourism and economic growth. In this article, we present the results of a rigorous meta-regression analysis based on 545 estimates drawn from 113 studies that empirically tested the tourism-led growth hypothesis (TLGH). The results suggest the presence of publication bias in the literature on this topic, where the majority of studies report positive and statistically significant estimates. Findings provide support for the TLGH, but they also suggest that the estimates are sensitive to a number of factors that are related to country data, specification, and estimation characteristics, and time span. Such sensitivities suggest that greater emphasis should be placed on reporting estimates of the relationship between tourism and economic growth across a variety of methodological characteristics and specification and estimation choices. The implications of the results for theory development are also discussed.

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Section: Resultsmentioning

confidence: 99%

Tourism and Economic Growth: A Meta-regression Analysis

Nunkoo

Seetanah

Jaffur

et al. 2019

Journal of Travel Research

148

112

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“…Furthermore, Quadri and Zheng (2010) carried out a study on exchange rate (LCU per Euro) and tourism, and found that in Italy, exchange rate does not affect tourism. Chi (2015) examined impact of exchange rate (US dollar versus foreign currencies) on tourism in USA, and found that appreciation of US dollar negatively affects tourism. It is also observed that effect of exchange rate varies in different tourist destinations.…”

Section: Introductionmentioning

confidence: 99%

Water resources and tourism development in South Asia: an application of dynamic common correlated effect (DCCE) model

Meo

Sabir

Arain

et al. 2020

Environ Sci Pollut Res

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The current study explores the relationship between water resources and tourism in South Asia for the period of 1995-2017. The study employs the CIPS unit root test for stationarity of the variables and the CD test for cross-sectional dependence among cross-sectional units. As for the long-run parameters, a novel technique, known as dynamic common correlated effect (DCCE) model, is used which was recently developed by Chudik and Pesaran (J Econ 188:393-420, 2015b). The outcomes from the DCCE method suggest that water resources have a positive impact on tourism in South Asia. It is also proven that ignoring cross-sectional dependence among the cross-sectional units may bring about misleading outcomes. The findings of the study can be helpful for policymakers to understand the role of water resources in boosting tourism and contributing to the economic prosperity of South Asian countries. Keywords Cross-sectional dependence . PMG . CIPS unit root test . CD test JEL classification L83 . B23 . Q25 . H5 Highlights 1. The current study explored the relationship between water availability, governance, infrastructure, exchange rate, and tourism in the south Asian context. 2. The study has employed CIPS unit root test and CD test for crosssectional dependence, while for long-run parameters, a novel technique known as Dynamic common correlated effect (DCCE) model, is used which is recently developed by Chudik and Pesaran (2015b). 3. The DCCE model accommodates heterogeneity, cross-sectional dependence, and stationarity, which is not possible in other long period based econometrical models. 4. It is confirmed from the results that there is a negative relationship between exchange rate and tourism. However, governance, infrastructure, and water availability have a positive relationship with tourism in the South Asian context. 5. It also proves that ignoring cross-sectional dependence among the cross-sectional units may cause misleading outcomes.

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“…Studies on the theory of the J-curve have been extensively researched in various countries such as (Bahmani-Oskooee & Fariditavana, 2016;Ari, Cergibozan & Cevik, 2019;Bahmani-Oskooee & Arize, 2019;Bahmani-Oskooee & Harvey, 2019) found evidence of the J-curve theory. Meanwhile (Rose & Yellen, 1989;Bahmani-Oskooee, Economidou & Goswami, 2006;Chi, 2015;Bahmani-Oskooee, Halicioglu & Hegerty, 2016;Dogru, Isik & Sirakaya-Turk, 2019) found no evidence of the J-curve theory.…”

Section: Introductionmentioning

confidence: 98%

“…The depreciation of local currencies against foreign currencies causes the destination to be costly to have an impact on the outbound tourism decline (Chi, 2015;Dogru, Isik & Sirakaya-Turk, 2019;Karimi, Khan & Karamelikli, 2019). However, outbound travelers who continue to travel will spend a greater cost.…”

Section: Introductionmentioning

confidence: 99%

Asymmetrical Exchange Rates Effect on Indonesia's Trade Balance in Tourism

Maulana

Dawood

Zulham

2021

jejak

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The main objective of this research is to analyze the effect of depreciation and real exchange rate appreciation on Indonesia's tourism trade balance bilaterally against Australia, China, Japan, Malaysia, and Singapore. Such analysis on bilateral relations have never been studied for developing markets countries, namely Indonesia. This study uses a linear ARDL approach and a nonlinear ARDL approach with the dependent variable on the tourism trade balance and the real exchange rate as independent variables. Income, foreign direct investment (FDI), and natural disasters as control variables. The empirical results show that Chinese and Japanese tourists respond positively to the depreciation in the real currency rate of exchange, thereby increasing Indonesia's tourism trade balance. Nonlinear ARDL shows that the relation concerning the real rate of exchange plus the balance of trade is non-symmetrical with respect to China and Japan, while Australia, Malaysia, and Singapore are symmetrical. These results suggest that the government should formulate policies to increase tourist visits from China and Japan. Further empirical results also found a J-curve pattern in Indonesia-China and Indonesia-Japan.

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Dynamic Impacts of Income and the Exchange Rate on US Tourism, 1960–2011

Cited by 22 publications

References 20 publications

Tourism and Economic Growth: A Meta-regression Analysis

Tourism and Economic Growth: A Meta-regression Analysis

Water resources and tourism development in South Asia: an application of dynamic common correlated effect (DCCE) model

Asymmetrical Exchange Rates Effect on Indonesia's Trade Balance in Tourism

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