IDEAS home Printed from https://ideas.repec.org/a/eee/anture/v85y2020ics0160738320302073.html
   My bibliography  Save this article

Domestic tourism spending and economic vulnerability

Author

Listed:
  • Canh, Nguyen Phuc
  • Thanh, Su Dinh

Abstract

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.

Suggested Citation

  • Canh, Nguyen Phuc & Thanh, Su Dinh, 2020. "Domestic tourism spending and economic vulnerability," Annals of Tourism Research, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:anture:v:85:y:2020:i:c:s0160738320302073
    DOI: 10.1016/j.annals.2020.103063
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160738320302073
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.annals.2020.103063?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wim Naude & Amelia Santos-Paulino & Mark McGillivray, 2009. "Measuring Vulnerability: An Overview and Introduction," Oxford Development Studies, Taylor & Francis Journals, vol. 37(3), pages 183-191.
    2. Carrascal Incera, André & Fernández, Melchor Fernández, 2015. "Tourism and income distribution: Evidence from a developed regional economy," Tourism Management, Elsevier, vol. 48(C), pages 11-20.
    3. Zhang, Lei & Gao, Jing, 2016. "Exploring the effects of international tourism on China's economic growth, energy consumption and environmental pollution: Evidence from a regional panel analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 225-234.
    4. Lee, Jung Wan & Brahmasrene, Tantatape, 2013. "Investigating the influence of tourism on economic growth and carbon emissions: Evidence from panel analysis of the European Union," Tourism Management, Elsevier, vol. 38(C), pages 69-76.
    5. Sebastian Kripfganz & Claudia Schwarz, 2019. "Estimation of linear dynamic panel data models with time‐invariant regressors," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 34(4), pages 526-546, June.
    6. Inchausti-Sintes, Federico, 2015. "Tourism: Economic growth, employment and Dutch Disease," Annals of Tourism Research, Elsevier, vol. 54(C), pages 172-189.
    7. Jacint Balaguer & Manuel Cantavella-Jorda, 2002. "Tourism as a long-run economic growth factor: the Spanish case," Applied Economics, Taylor & Francis Journals, vol. 34(7), pages 877-884.
    8. Juan Antonio Morales, 1994. "The Vulnerability of Inflation Stabilization to External Shocks: A Case Study of Bolivia," International Economic Association Series, in: Edmar L. Bacha (ed.), Economics in a Changing World, chapter 8, pages 171-194, Palgrave Macmillan.
    9. Gu, Xinhua & Li, Guoqiang & Chang, Xiao & Guo, Haizhen, 2017. "Casino tourism, economic inequality, and housing bubbles," Tourism Management, Elsevier, vol. 62(C), pages 253-263.
    10. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    11. Martins, Luís Filipe & Gan, Yi & Ferreira-Lopes, Alexandra, 2017. "An empirical analysis of the influence of macroeconomic determinants on World tourism demand," Tourism Management, Elsevier, vol. 61(C), pages 248-260.
    12. Benno Ferrarini & David Hummels, 2014. "Asia and global production networks: implications for trade, incomes and economic vulnerability," Chapters, in: Benno Ferrarini & David Hummels (ed.), Asia and Global Production Networks, chapter 1, pages 1-15, Edward Elgar Publishing.
    13. Bussiere, Matthieu & Mulder, Christian, 2000. "Political Instability and Economic Vulnerability," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 5(4), pages 309-330, October.
    14. Choongik Choi, 2016. "Does economic growth really reduce disaster damages? Index decomposition analysis for the relationship between disaster damages, urbanization and economic growth and its implications," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 20(2), pages 188-205, July.
    15. Feldkircher, Martin, 2014. "The determinants of vulnerability to the global financial crisis 2008 to 2009: Credit growth and other sources of risk," Journal of International Money and Finance, Elsevier, vol. 43(C), pages 19-49.
    16. Cavallo, Eduardo A. & Frankel, Jeffrey A., 2008. "Does openness to trade make countries more vulnerable to sudden stops, or less? Using gravity to establish causality," Journal of International Money and Finance, Elsevier, vol. 27(8), pages 1430-1452, December.
    17. Liyanage Devangi H. Perera & Grace H.Y. Lee, 2013. "Have Economic Growth And Institutional Quality Contributed To Poverty And Inequality Reduction In Asia?," Monash Economics Working Papers 37-13, Monash University, Department of Economics.
    18. Gordon Cordina, 2004. "Economic Vulnerability And Economic Growth: Some Results From A Neo-Classical Growth Modelling Approach," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 29(2), pages 21-39, December.
    19. Alam, Md. Samsul & Paramati, Sudharshan Reddy, 2016. "The impact of tourism on income inequality in developing economies: Does Kuznets curve hypothesis exist?," Annals of Tourism Research, Elsevier, vol. 61(C), pages 111-126.
    20. Sosso FEINDOUNO & Michaël GOUJON, 2016. "The retrospective economic vulnerability index, 2015 update," Working Papers P147, FERDI.
    21. Anuradha Seth & Amr Ragab, 2012. "Macroeconomic Vulnerability in Developing Countries: Approaches and Issues," One Pager 152, International Policy Centre for Inclusive Growth.
    22. Edmar L. Bacha (ed.), 1994. "Economics in a Changing World," International Economic Association Series, Palgrave Macmillan, number 978-1-349-23458-5, December.
    23. Perera, Liyanage Devangi H. & Lee, Grace H.Y., 2013. "Have economic growth and institutional quality contributed to poverty and inequality reduction in Asia?," MPRA Paper 52763, University Library of Munich, Germany.
    24. Saenz-de-Miera, Oscar & Rosselló, Jaume, 2014. "Modeling tourism impacts on air pollution: The case study of PM10 in Mallorca," Tourism Management, Elsevier, vol. 40(C), pages 273-281.
    25. Lino Briguglio & Gordon Cordina & Nadia Farrugia & Stephanie Vella, 2009. "Economic Vulnerability and Resilience: Concepts and Measurements," Oxford Development Studies, Taylor & Francis Journals, vol. 37(3), pages 229-247.
    26. Barrot, Luis-Diego & Calderón, César & Servén, Luis, 2018. "Openness, specialization, and the external vulnerability of developing countries," Journal of Development Economics, Elsevier, vol. 134(C), pages 310-328.
    27. Katircioglu, Salih Turan, 2014. "International tourism, energy consumption, and environmental pollution: The case of Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 36(C), pages 180-187.
    28. Ma, Ben & Cai, Zhen & Zheng, Jie & Wen, Yali, 2019. "Conservation, ecotourism, poverty, and income inequality – A case study of nature reserves in Qinling, China," World Development, Elsevier, vol. 115(C), pages 236-244.
    29. Gooroochurn, Nishaal & Milner, Chris, 2005. "Assessing Indirect Tax Reform in a Tourism-Dependent Developing Country," World Development, Elsevier, vol. 33(7), pages 1183-1200, July.
    30. Banerjee, Onil & Cicowiez, Martin & Gachot, Sébastien, 2015. "A quantitative framework for assessing public investment in tourism – An application to Haiti," Tourism Management, Elsevier, vol. 51(C), pages 157-173.
    31. Bailey, Delia & Katz, Jonathan N., 2011. "Implementing Panel-Corrected Standard Errors in R: The pcse Package," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 42(c01).
    32. Ilan Noy & Rio Yonson, 2018. "Economic Vulnerability and Resilience to Natural Hazards: A Survey of Concepts and Measurements," Sustainability, MDPI, vol. 10(8), pages 1-16, August.
    33. Greiner, Alfred & Feichtinger, Gustav & Haunschmied, Josef L. & Kort, Peter M. & Hartl, Richard F., 2001. "Optimal periodic development of a pollution generating tourism industry," European Journal of Operational Research, Elsevier, vol. 134(3), pages 582-591, November.
    34. Garsous, Grégoire & Corderi, David & Velasco, Mercedes & Colombo, Andrea, 2017. "Tax Incentives and Job Creation in the Tourism Sector of Brazil’s SUDENE Area," World Development, Elsevier, vol. 96(C), pages 87-101.
    35. Li, Hengyun & Chen, Jason Li & Li, Gang & Goh, Carey, 2016. "Tourism and regional income inequality: Evidence from China," Annals of Tourism Research, Elsevier, vol. 58(C), pages 81-99.
    36. Alam, Md. Samsul & Paramati, Sudharshan Reddy, 2017. "The dynamic role of tourism investment on tourism development and CO2 emissions," Annals of Tourism Research, Elsevier, vol. 66(C), pages 213-215.
    37. Sena Kimm Gnangnon, 2016. "Trade openness and structural vulnerability in developing countries," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 43(1), pages 70-89, January.
    38. Sun, Ya-Yen, 2014. "A framework to account for the tourism carbon footprint at island destinations," Tourism Management, Elsevier, vol. 45(C), pages 16-27.
    39. Benno Ferrarini & David Hummels (ed.), 2014. "Asia and Global Production Networks," Books, Edward Elgar Publishing, number 15649.
    40. Malik, Adeel & Temple, Jonathan R.W., 2009. "The geography of output volatility," Journal of Development Economics, Elsevier, vol. 90(2), pages 163-178, November.
    41. Briguglio, Lino, 1995. "Small island developing states and their economic vulnerabilities," World Development, Elsevier, vol. 23(9), pages 1615-1632, September.
    42. Canh Phuc Nguyen & Christophe Schinckus & Thanh Dinh Su, 2020. "Economic policy uncertainty and demand for international tourism: An empirical study," Tourism Economics, , vol. 26(8), pages 1415-1430, December.
    43. Dongyeol Lee & Hyunjoon Lim, 2019. "Industrial structure and the probability of crisis: Stability is not resilience," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 24(1), pages 212-226, January.
    44. Gössling, Stefan & Peeters, Paul & Hall, C. Michael & Ceron, Jean-Paul & Dubois, Ghislain & Lehmann, La Vergne & Scott, Daniel, 2012. "Tourism and water use: Supply, demand, and security. An international review," Tourism Management, Elsevier, vol. 33(1), pages 1-15.
    45. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rafał Nagaj & Brigita Žuromskaitė, 2021. "Tourism in the Era of Covid-19 and Its Impact on the Environment," Energies, MDPI, vol. 14(7), pages 1-18, April.
    2. Wang, Yong & Han, Linna & Ma, Xuejiao, 2022. "International tourism and economic vulnerability," Annals of Tourism Research, Elsevier, vol. 94(C).
    3. Daniel Bulin & Georgică Gheorghe & Iulian-Petru Tenie, 2021. "EU Most Vulnerable Economies from the Tourism Sector Perspective: a Macroeconomic Approach," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 9(1), pages 48-54, June.
    4. Mikulić, Josip & Vizek, Maruška & Stojčić, Nebojša & Payne, James E. & Čeh Časni, Anita & Barbić, Tajana, 2021. "The effect of tourism activity on housing affordability," Annals of Tourism Research, Elsevier, vol. 90(C).
    5. Vinko Muštra & Blanka Škrabić Perić & Smiljana Pivčević, 2023. "Cultural heritage sites, tourism and regional economic resilience," Papers in Regional Science, Wiley Blackwell, vol. 102(3), pages 465-482, June.
    6. Canh P Nguyen, 2023. "Last chance to travel or safety first? The influence of exposure to natural hazards and coping capacities on tourism consumption," Tourism Economics, , vol. 29(4), pages 952-985, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nguyen, Canh Phuc & Su, Thanh Dinh, 2021. "Easing economic vulnerability: Multidimensional evidence of financial development," The Quarterly Review of Economics and Finance, Elsevier, vol. 81(C), pages 237-252.
    2. Bright Akwasi Gyamfi & Murad A Bein & Festus Fatai Adedoyin & Festus Victor Bekun, 2022. "How does energy investment affect the energy utilization-growth-tourism nexus? Evidence from E7 Countries," Energy & Environment, , vol. 33(2), pages 354-376, March.
    3. Sèna Kimm Gnangnon & Harish Iyer, 2017. "Structural Economic Vulnerability, Trade Policy and FDI Inflows," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 8(01), pages 1-35, February.
    4. Canh Phuc Nguyen & Christophe Schinckus, 2023. "How do countries deal with global uncertainty? Domestic ability to absorb shock through the lens of the economic complexity and export diversification," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(3), pages 2591-2618, June.
    5. Montalbano, Pierluigi, 2011. "Trade Openness and Developing Countries' Vulnerability: Concepts, Misconceptions, and Directions for Research," World Development, Elsevier, vol. 39(9), pages 1489-1502, September.
    6. Canh, Nguyen Phuc & Schinckus, Christophe & Thanh, Su Dinh & Hui Ling, Felicia Chong, 2020. "Effects of the internet, mobile, and land phones on income inequality and The Kuznets curve: Cross country analysis," Telecommunications Policy, Elsevier, vol. 44(10).
    7. Jiekuan Zhang & Yan Zhang, 2021. "Tourism, economic growth, energy consumption, and CO2 emissions in China," Tourism Economics, , vol. 27(5), pages 1060-1080, August.
    8. Wang, Yong & Han, Linna & Ma, Xuejiao, 2022. "International tourism and economic vulnerability," Annals of Tourism Research, Elsevier, vol. 94(C).
    9. Gnangnon, Sèna Kimm, 2017. "Structural economic vulnerability, openness and bilateral development aid flows," Economic Analysis and Policy, Elsevier, vol. 53(C), pages 77-95.
    10. Gnangnon, Sèna Kimm, 2022. "Internet, Participation in International Trade, and Tax Revenue Instability," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 267-315.
    11. Alam, Ashraful & Uddin, Moshfique & Yazdifar, Hassan, 2019. "Institutional determinants of R&D investment: Evidence from emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 34-44.
    12. Chu, Lan Khanh & Hoang, Dung Phuong, 2020. "How does economic complexity influence income inequality? New evidence from international data," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 44-57.
    13. Gnangnon, Sèna Kimm, 2018. "Effect of multilateral trade liberalization on foreign direct investment outflows amid structural economic vulnerability in developing countries," Research in International Business and Finance, Elsevier, vol. 45(C), pages 15-29.
    14. Jing Gao & Wen Xu & Lei Zhang, 2021. "Tourism, economic growth, and tourism-induced EKC hypothesis: evidence from the Mediterranean region," Empirical Economics, Springer, vol. 60(3), pages 1507-1529, March.
    15. Bach Nguyen & Christophe Schinckus & Nguyen Phuc Canh & Su Dinh Thanh, 2021. "Economic Policy Uncertainty and Entrepreneurship: A Bad for a Good?," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 30(1), pages 81-133, March.
    16. Sakiru Adebola Solarin, 2022. "Modelling Two Dimensions of Poverty in Selected Developing Countries: The Impact of Fossil Fuel Subsidies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(1), pages 357-379, February.
    17. Nguyen, Canh Phuc & Nasir, Muhammad Ali, 2021. "An inquiry into the nexus between energy poverty and income inequality in the light of global evidence," Energy Economics, Elsevier, vol. 99(C).
    18. Gnangnon, Sèna Kimm, 2023. "Effect of the duration of membership in the GATT/WTO on economic growth volatility," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 448-467.
    19. Iyke Bernard Njindan, 2017. "Does Trade Openness Matter for Economic Growth in the CEE Countries?," Review of Economic Perspectives, Sciendo, vol. 17(1), pages 3-24, March.
    20. Raul V. Fabella & Sarah Lynne S. Daway-Ducanes, 2018. "Federalism and Inclusion in Developing Economies," UP School of Economics Discussion Papers 201804, University of the Philippines School of Economics.

    More about this item

    Keywords

    Tourism; Travel; Vulnerability; Resilience; Time-varying; Panel data;
    All these keywords.

    JEL classification:

    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development
    • Z38 - Other Special Topics - - Tourism Economics - - - Policy
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:anture:v:85:y:2020:i:c:s0160738320302073. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/annals-of-tourism-research/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.