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Are Malaysia's Tourism Markets Converging? Evidence from Univariate and Panel Unit Root Tests with Structural Breaks

Author

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  • Hooi Hooi Lean

    (Economics Program, School of Social Sciences, Universiti Sains Malaysia, 11800 USM, Penang, Malaysia)

  • Russell Smyth

    (Department of Economics, Monash University, Australia)

Abstract

Over the past 25 years, the tourism sector has emerged as an important source of foreign exchange for Malaysia. This paper applies univariate and panel Lagrange multiplier (LM) unit root tests with one and two structural breaks to examine whether Malaysia's ten most important tourist markets are converging. The study finds strong evidence that Malaysia's tourism markets are converging. Based on these findings, implications are drawn about the success of the marketing strategies of Tourism Malaysia and the prospects for the continuing contribution of tourism to the Malaysian economy.

Suggested Citation

  • Hooi Hooi Lean & Russell Smyth, 2008. "Are Malaysia's Tourism Markets Converging? Evidence from Univariate and Panel Unit Root Tests with Structural Breaks," Tourism Economics, , vol. 14(1), pages 97-112, March.
    • Handle: RePEc:sae:toueco:v:14:y:2008:i:1:p:97-112
    DOI: 10.5367/000000008783554820
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    References listed on IDEAS

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    1. Hooi Hooi Lean & Russell Smyth, 2006. "Asian Financial Crisis, Avian Flu And Terrorist Threats: Are Shocks To Malaysian Tourist Arrivals Permanent Or Transitory?," Monash Economics Working Papers 11/06, Monash University, Department of Economics.
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    Cited by:

    1. Sakiru Adebola Solarin, 2018. "Convergence hypothesis in tourism markets and activities in Taiwan," Tourism Economics, , vol. 24(8), pages 1037-1044, December.
    2. Mishra, Vinod & Smyth, Russell, 2014. "Convergence in energy consumption per capita among ASEAN countries," Energy Policy, Elsevier, vol. 73(C), pages 180-185.
    3. Fateh Habibi, 2015. "Iranian Tourism Demand for Malaysia: A Bound Test Approach," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 19(1), pages 63-80, Winter.
    4. Constantinos Katrakilidis & George Konteos & Nikolaos Sariannidis & Chrysi Manolidou, 2017. "Investigation of Convergence in the Tourist Markets of Greece," European Research Studies Journal, European Research Studies Journal, vol. 0(4A), pages 707-729.
    5. Luis A Gil-Alana & à gueda Gil-López & Elena San Román, 2021. "Tourism persistence in Spain: National versus international visitors," Tourism Economics, , vol. 27(4), pages 614-625, June.
    6. Berhan ÇOBAN & Esin FİRUZAN, 2019. "Convergence and Cointegration Analysis under Structural Breaks: Application of Turkey Tourism Markets," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(39).
    7. Svetlana Gurieva & Irina Kuznetsova & Ekaterina Yumkina & Sergey Manichev & Elena Sidorenko, 2017. "Emotional Intelligence and Behavior Styles of Russian Middle Managers in Business Communication," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 679-693.
    8. Chor Foon Tang, 2011. "An exploration of dynamic relationship between tourist arrivals, inflation, unemployment and crime rates in Malaysia," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 38(1), pages 50-69, January.
    9. Abdul-Rahim, A.S. & Mohd-Shahwahid, H.O., 2012. "Sustainable forest management policy and the analysis of convergence effects on timber production," Forest Policy and Economics, Elsevier, vol. 22(C), pages 60-64.
    10. Paresh Kumar Narayan & Seema Narayan & Arti Prasad & Biman Chand Prasad, 2010. "Tourism and Economic Growth: A Panel Data Analysis for Pacific Island Countries," Tourism Economics, , vol. 16(1), pages 169-183, March.
    11. Burcu Ozcan, 2014. "Do Tourism Markets Of Turkey Converge?," Proceedings of International Academic Conferences 0200630, International Institute of Social and Economic Sciences.
    12. Apergis Nicholas, 2021. "Forecasting US overseas travelling with univariate and multivariate models," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 40(6), pages 963-976, September.
    13. Abbott, Andrew & De Vita, Glauco & Altinay, Levent, 2012. "Revisiting the convergence hypothesis for tourism markets: Evidence from Turkey using the pairwise approach," Tourism Management, Elsevier, vol. 33(3), pages 537-544.
    14. Chew Ging Lee, 2009. "Research Note: The Convergence Hypothesis for Tourism Markets: Evidence from Singapore," Tourism Economics, , vol. 15(4), pages 875-881, December.
    15. Fatih Kaplan & Erdo?an ?zt¨¹rk & ?ule G¨¹ng?r, 2017. "Is the Club Convergence Hypothesis Validy for Turkey Tourism Market," Research in Applied Economics, Macrothink Institute, vol. 9(3), pages 24-30, September.
    16. Eda FENDOGLU & Esra CANPOLAT GOKCE, 2019. "Türkiye’nin Turizm Geliri Serisinin Durağanlığı: Fourier KPSS Durağanlık Test," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 31(0), pages 17-28, December.
    17. Habibi, Fateh & Abdul Rahim, Khalid & Chin, Lee, 2008. "United Kingdom and United States Tourism Demand for Malaysia:A Cointegration Analysis," MPRA Paper 13590, University Library of Munich, Germany.
    18. Stavros A Kourtzidis & Panayiotis Tzeremes & Nickolaos G Tzeremes & Tomáš Heryán, 2018. "Integration of tourism markets in Australia," Tourism Economics, , vol. 24(7), pages 901-907, November.
    19. Siow-Hooi Tan & Siow-Kian Tan, 2013. "Research Note: Are Singapore's Tourism Markets Converging with Structural Breaks?," Tourism Economics, , vol. 19(1), pages 209-216, February.
    20. Sakiru Adebola Solarin, 2014. "Revisiting the Convergence Hypothesis of Tourism Markets: Evidence from South Africa," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 8(1), pages 77-92, February.
    21. Lin, Zhibin & You, Kefei & Lau, Chi Keung & Demir, Ender, 2019. "Segmenting global tourism markets: A panel club convergence approach," Annals of Tourism Research, Elsevier, vol. 75(C), pages 165-185.
    22. Guglielmo Maria Caporale & Luis Alberiko Gil-Alana, 2019. "UK overseas visitors: Seasonality and persistence," Tourism Economics, , vol. 25(5), pages 827-831, August.
    23. Tuck Cheong Tang & Koi Nyen Wong, 2009. "Research Note: The SARS Epidemic and International Visitor Arrivals to Cambodia: Is the Impact Permanent or Transitory?," Tourism Economics, , vol. 15(4), pages 883-890, December.
    24. Mérida, Adrián L. & Carmona, Mónica & Congregado, Emilio & Golpe, Antonio A., 2016. "Exploring the regional distribution of tourism and the extent to which there is convergence," Tourism Management, Elsevier, vol. 57(C), pages 225-233.

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