Tourism and Poverty Reduction in Mexico: An ARDL Cointegration Approach

Garza-Rodríguez, Jorge

doi:10.3390/su11030845

Cited by 36 publications

(24 citation statements)

References 24 publications

(49 reference statements)

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“…Unlike other existing methods in the literature, such as Engle-Granger [83] and Johansen-Juselius [84], the ARDL cointegration method has the advantage to verify the existence of long-term relationships between variables that have different orders of integration, while the results of the analysis are robust for an incorrect specification of the order of integration. Other advantages of the ARDL cointegration technique mention the following aspects: Different restrictions can be applied in terms of the optimum number of lags of the variables under consideration [85]; it is based on a single equation, which estimates simultaneously both the short-run and the long-run relationships, which makes it easy to implement and interpret [86][87][88][89]. The ARDL Bound test model, used in this study is expressed as follows [90,91]:…”

Section: The Ardl Bound Cointegration Testmentioning

confidence: 99%

The Impact of Interest Rate, Exchange Rate and European Business Climate on Economic Growth in Romania: An ARDL Approach with Structural Breaks

2020

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The role of the interest and exchange rates in sustaining economic growth has been a highly researched subject. Therefore, this study examines the influence of the monetary policy interest rate, the real exchange rate and the business climate in the Euro area on the economic growth in Romania. For this purpose, we have applied a pre-test for structural breaks to identify the existence of structural breaks, followed by the traditional unit root tests and the unit root tests with structural breaks to verify the stationarity of the variables. The results of the Bound cointegration test led to the autoregressive distributed lag (ARDL) short-run model that measures the short-run impact of the interest rate, exchange rate and the business climate in the Euro area on the economic growth of Romania. Our findings show that in the short run, the economic growth is negatively influenced by the interest rate, and positively by the exchange rate. We also indicate that the business climate in the Euro area has mixed effects on the economic growth. Finally, considering the growing interdependence between the internal and external (European) business environment, the results are highly significant for handling the interest and exchange rates in sustaining economic growth.

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Section: The Ardl Bound Cointegration Testmentioning

confidence: 99%

The Impact of Interest Rate, Exchange Rate and European Business Climate on Economic Growth in Romania: An ARDL Approach with Structural Breaks

2020

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“…Rodriguez [13] investigated the per capita household expenditures and international tourism nexus for the Mexican economy. The study used per capita household expenditures as a proxy for poverty.…”

Section: The Impact Of Macroeconomic Factors On Povertymentioning

confidence: 99%

“…In the 1990s, the poverty rate rose to 34%, bringing several socio-economic problems for the economy. After the end of the Afghanistan war, the USA Sustainability 2021, 13, 6411 2 of 16 government reduced its foreign aid. Moreover, nuclear sanctions, cut off aid, and freeze foreign accounts had an adverse effect on Pakistan's economy, which increased poverty.…”

Section: Introductionmentioning

confidence: 99%

Investment Portfolio, Democratic Accountability, Poverty and Income Inequality Nexus in Pakistan: A Way to Social Sustainability

et al. 2021

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Institutions help to streamline the economic activity-related procedures, where government intervention might be involved. Institutions also play a significant role in social sustainability. The findings using the Autoregressive Distributed Lag approach to cointegration for the period from 1984–2019 reveal that investment portfolio and democratic accountability reduce poverty in Pakistan both in the long and short run. Moreover, democratic accountability helps to reduce income inequality, but the investment portfolio’s role is not significant. The literacy rate helps to reduce income inequality, and inflation increases poverty and income inequality. The remittances increase income inequality, and urbanization increases poverty. To eradicate poverty and income inequality, the governments should be accountable for their actions to the general public while they remain in power. If they do not deliver as per their manifestoes, they will not be reelected in the next election. Moreover, there is a dire need to redefine the role of an investment portfolio to reduce the risk of investment. So, investments would increase economic activities and could reduce poverty and income inequality. This study contributes to the literature by inquiring about the role of the investment portfolio and democratic accountability in social sustainability by reducing poverty and income inequality. This study only considers Pakistan’s economy due to limitations of poverty data availability in other countries. The scope could further be broadened by accessing data for a wider Asia region to test the role of the investment portfolio and democratic accountability to reduce poverty and income inequality.

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“…However, the incomes from tourism are significant to economic growth and poverty reduction in countries like Mexico, Uruguay, Nicaragua, Bolivia, Cuba, the Dominican Republic, Ecuador, Costa Rica, Peru and Brazil [54]. Furthermore, in Mexico, through an autoregressive distributed lags (ARDL) approach, the existence of a long-term relationship between international tourism and poverty reduction is evident [55].…”

Section: Literature Reviewmentioning

confidence: 99%

The Spatial Externalities of Tourism Activities in Poverty Reduction

et al. 2020

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Poverty is one of the main indicators of economic development worldwide, in such a way that one of the Sustainable Development Goals is to eradicate poverty in all its forms worldwide. The objective of this research was to examine the effect of the gross value added (GVA) of tourism on poverty in the 198 contiguous Ecuadorian cantons. The methodology used was the application of a set of spatial econometric models to capture the regional effect of tourism on poverty. Data were obtained from the Central Bank of Ecuador and the National Survey of Employment, Unemployment and Under-Employment of the National Institute of Statistics and Census (INEC). The results show that tourism activities and regional poverty are negatively related; thus, a 1% increase in tourism-related economic activity decreases the regional poverty of the canton itself by 4.31%, and that of neighboring cantons by between 0.7% and 2.4%. The inclusion of the control variables shows that schooling and the mestizo population contribute to reducing the canton’s poverty, since the regions with a high GVA of tourism have high levels of schooling and a mestizo population. Thus, regional poverty increases when the level of schooling increases in neighboring cantons. On the other hand, in cantons with a high Mestizo population, compared to the African-American population, the poverty of the canton and its neighboring regions decreases. Public policy measures which aim at reducing poverty must take into account spatial spills from tourist activity in the cantons.

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Tourism and Poverty Reduction in Mexico: An ARDL Cointegration Approach

Cited by 36 publications

References 24 publications

The Impact of Interest Rate, Exchange Rate and European Business Climate on Economic Growth in Romania: An ARDL Approach with Structural Breaks

The Impact of Interest Rate, Exchange Rate and European Business Climate on Economic Growth in Romania: An ARDL Approach with Structural Breaks

Investment Portfolio, Democratic Accountability, Poverty and Income Inequality Nexus in Pakistan: A Way to Social Sustainability

The Spatial Externalities of Tourism Activities in Poverty Reduction

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