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The Influence of Crude Oil Prices Volatility, the Internet and Exchange Rate on the Number of Foreign Tourist Arrivals in Indonesia

Author

Listed:
  • Heppi Millia

    (Department of Economics, Universitas Halu Oleo, Kendari, Indonesia)

  • Pasrun Adam

    (Department of Mathematics, Universitas Halu Oleo, Kendari, Indonesia,)

  • Zainuddin Saenong

    (Department of Economics, Universitas Halu Oleo, Kendari, Indonesia)

  • Muh. Yani Balaka

    (Department of Economics, Universitas Halu Oleo, Kendari, Indonesia)

  • Yuwanda Purnamasari Pasrun

    (Department of Information System, Universitas Sembilanbelas November, Kolaka, Indonesia.)

  • La Ode Saidi

    (Department of Mathematics, Universitas Halu Oleo, Kendari, Indonesia,)

  • Wali Aya Rumbia

    (Department of Economics, Universitas Halu Oleo, Kendari, Indonesia)

Abstract

This paper seeks to examine the influence of crude oil prices volatility, the internet, and exchange rate on the number of foreign tourist arrivals in Indonesia. Using a time-series dataset from 1995 to 2018 and employing an autoregressive distributed lag (ARDL) model plus an error correction model (ECM-ARDL), our research shows that in the long run, the internet has a positive influence on the number of foreign tourist arrivals. Every 1% rise in the internet, the number of foreign tourist arrivals rises by 0.49%. However, crude oil prices volatility and exchange rates do not significantly affect the number of foreign tourist arrivals. In the short run, there is a negative influence of crude oil price volatility on the number of foreign tourist arrivals. Meanwhile, the exchange rate positively affects the number of foreign tourist arrivals, meaning that the appreciation (depreciation) of the IDR exchange rate against the USD causes the number of foreign tourist arrivals to go down (up).

Suggested Citation

  • Heppi Millia & Pasrun Adam & Zainuddin Saenong & Muh. Yani Balaka & Yuwanda Purnamasari Pasrun & La Ode Saidi & Wali Aya Rumbia, 2020. "The Influence of Crude Oil Prices Volatility, the Internet and Exchange Rate on the Number of Foreign Tourist Arrivals in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 280-287.
    • Handle: RePEc:eco:journ2:2020-06-37
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    References listed on IDEAS

    as
    1. Pasrun Adam & Ambo Wonua Nusantara & Abd AzisMuthalib, 2017. "Foreign Interest Ratesand the IslamicStock Market Integration between Indonesia and Malaysia," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 21(3), pages 639-659, Summer.
    2. Pasrun Adam & Usman Rianse & Edi Cahyono & Manat Rahim, 2015. "Modeling of the Dynamics Relationship between World Crude Oil Prices and the Stock Market in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 550-557.
    3. Bahmani-Oskooee, Mohsen & Kutan, Ali M. & Xi, Dan, 2015. "Does exchange rate volatility hurt domestic consumption? Evidence from emerging economies," International Economics, Elsevier, vol. 144(C), pages 53-65.
    4. Agiomirgianakis, George & Bertsatos, Georgios & Tsounis, Nicholas, 2018. "Asymmetric responses in the tourism demand function," The Journal of Economic Asymmetries, Elsevier, vol. 18(C), pages 1-1.
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    Cited by:

    1. Rosnawintang Rosnawintang & Tajuddin Tajuddin & Pasrun Adam & Yuwanda Purnamasari Pasrun & La Ode Saidi, 2021. "Effects of Crude Oil Prices Volatility, the Internet and Inflation on Economic Growth in ASEAN-5 Countries: A Panel Autoregressive Distributed Lag Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 15-21.
    2. Sun, Li & Wang, Yang, 2021. "Global economic performance and natural resources commodity prices volatility: Evidence from pre and post COVID-19 era," Resources Policy, Elsevier, vol. 74(C).

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    More about this item

    Keywords

    Crude oil price volatility; the internet; exchange rate; foreign tourist arrivals; ARDL model.;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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