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The Dynamics of Tourism—Refugeeism on House Prices in Cyprus and Malta

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  • Andrew Adewale Alola

    (Eastern Mediterranean University)

  • Uju Violet Alola

    (Eastern Mediterranean University)

Abstract

Until recently, Cyprus and Malta’s economies are mainly driven by tourism. Also, the two countries are consistently referred to as the frontline states based on the age-long refugee crisis caused by African migrants during the Middle East civil unrest. On this regard, the Grouped mean approaches of the Fully-modified least square (FMOLS) and Dynamic least square (DOLS) estimators are employed to investigate the long-run relationship between the housing prices and international tourist arrivals, and the number of refugees. Using the quarterly data spanning 2005Q1 to 2016Q4, the study finds an elasticity of at most 0.37 and 0.78 of the house price with respect to the number of refugees and international tourist arrival, respectively. It further implies that the housing price and the number of refugees (“refugeeism”) are positively related; tourism was observed to be negatively related to the housing price. Also, there exists a significant Granger causality from the number of refugees to the house price without feedback but no evidence of Granger causality is found between tourism and the house price. The study proffers policies that effectively avert disservice and minimize challenges associated with growth in tourism activities and refugee crisis associated with the region.

Suggested Citation

  • Andrew Adewale Alola & Uju Violet Alola, 2019. "The Dynamics of Tourism—Refugeeism on House Prices in Cyprus and Malta," Journal of International Migration and Integration, Springer, vol. 20(2), pages 521-536, May.
    • Handle: RePEc:spr:joimai:v:20:y:2019:i:2:d:10.1007_s12134-018-0621-x
    DOI: 10.1007/s12134-018-0621-x
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    Cited by:

    1. Alola, Andrew & Asongu, Simplice & Alola, Uju, 2019. "House prices and tourism development in Cyprus: A contemporary perspective," MPRA Paper 101795, University Library of Munich, Germany.
    2. Andrew Adewale Alola, 2021. "Evidence of speculative bubbles and regime switch in real estate market and crude oil price: Insight from Saudi Arabia," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 3473-3483, July.
    3. Saffet Akdağ & İlker Kiliç & Hakan Yildirim, 2019. "Does VIX scare stocks of tourism companies?," Letters in Spatial and Resource Sciences, Springer, vol. 12(3), pages 215-232, December.
    4. Setareh Shirkhani & Sami Fethi & Andrew Adewale Alola, 2021. "Tourism-Related Loans as a Driver of a Small Island Economy: A Case of Northern Cyprus," Sustainability, MDPI, vol. 13(17), pages 1-17, August.

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    More about this item

    Keywords

    House prices; Refugee; Tourism; FMOLS and DOLS estimators; Republic of Cyprus; Republic of Malta;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • N94 - Economic History - - Regional and Urban History - - - Europe: 1913-
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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