Kumar, Nikeel and Chandra, Ravinay A. and Patel, Arvind (2021) Mixed frequency evidence of the tourism growth relationship in small Island developing states: a case study of Tonga. Asia Pacific Journal of Tourism Research, 26 (3). pp. 294-307. ISSN 1094-1665
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Abstract
In this study, we examine the effect of tourism on economic growth in Tonga. We apply Ghysels Beta-MIDAS approach to estimate the elasticity of tourism, identify breaks with the multiple break test, and test for causality using the mixed frequency VAR approach. We utilize a sample from 1995 quarter 1 to 2018 quarter 4. The results indicate that the long-run effect of tourism is 0.06. Two structural breaks are identified, and both have negative growth effects. Unidirectional causality from tourism to real per-capita GDP is noted. The findings indicate that Tonga’s economic growth can be improved by promoting tourism.
Item Type: | Journal Article |
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Subjects: | H Social Sciences > HD Industries. Land use. Labor |
Divisions: | Faculty of Business and Economics (FBE) > School of Accounting and Finance |
Depositing User: | Ms Shalni Sanjana |
Date Deposited: | 27 May 2021 02:20 |
Last Modified: | 27 May 2021 02:20 |
URI: | https://repository.usp.ac.fj/id/eprint/12790 |
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