The Vulnerability of Inflation Stabilization to External Shocks: A Case Study of Bolivia

Morales, Juan Antonio

doi:10.1007/978-1-349-23458-5_8

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2020

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“…This result is different from the study of Choi (2016) . Regarding inflation, we find that an increase in inflation could raise economic vulnerability, as found in Morales (1994) . Interestingly, observations show that economic growth and institutions have heteroscedastic effects on economic vulnerability, suggesting that the relationship between these variables would need to be verified by further empirical research ( Cordina, 2004 ).…”

Section: Resultssupporting

confidence: 53%

Domestic tourism spending and economic vulnerability

Nguyen

Thanh

2020

Annals of Tourism Research

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This study examines the influence of domestic tourism on economic vulnerability index (EVI). Domestic tourism spending has a significant effect in reducing EVI. These results are consistent with two sub-indices of EVI (shock index and exposure index). Interestingly, it is found that: (i) this impact is consistent in low- and lower-middle-income countries, while domestic tourism has a non-significantly effect in upper-middle and high-income countries of increasing EVI; (ii) these results are consistent in the long-run; and (iii) the impact of domestic tourism is consistent in both the 2002–2007 and 2008–2012 periods, but is statistically non-significant in the 2013–2017 period. Notably, we find that domestic tourism spending has a U-shape effect on EVI; while international tourism has an increasing effect.

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Section: Resultssupporting

confidence: 53%