The linear and non - linear relationship between of tourism demand and output per worker: a study of Sri Lanka

Kumar, Ronald R. and Stauvermann, P.J. (2016) The linear and non - linear relationship between of tourism demand and output per worker: a study of Sri Lanka. Tourism Management Perspectives, 19 (Part A). pp. 109-120. ISSN 2211-9736

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Abstract

Linear and non-linear long-run association between tourism and economic growth is examined using the autoregressive distributed lag procedure with Sri Lanka as a reference country over the sample period 1978–2014. Linear estimation results indicate that a 1% increase in tourism receipts result in an increase in the output per worker by 0.10% in the long run. The net effect in the short run is marginally negative and generally mixed. Non-linear relationship explains the effectiveness of the tourism industry depends strongly on public infrastructure which is subject to congestion like the public transport, airports, road system or telecommunications. A long-run U-shape relationship is detected with the minimum necessary tourism receipts of 1.26% of GDP. The causality results indicate that higher tourism receipts causes growth. The method applied here can be used to examine other countries in the similar domain.

Item Type:	Journal Article
Subjects:	H Social Sciences > HA Statistics H Social Sciences > HB Economic Theory
Divisions:	Faculty of Business and Economics (FBE) > School of Accounting and Finance
Depositing User:	Ronald Kumar
Date Deposited:	27 Jun 2016 00:06
Last Modified:	27 Jun 2016 00:06
URI:	https://repository.usp.ac.fj/id/eprint/8987

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