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Outbound Business Travel Depends on Business Returns: Australian Evidence

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Author Info

  • Collins, Darrian
  • Tisdell, Clement A.

Abstract

In an earlier note, Collins and Tisdell (2002b) explored the possibility of a long-run relationship between Australian business returns and international business travel. Using annual data they found that such a relationship exists. The purpose of this study is to further examine this relationship using quarterly data for the time frame 1974:1 to 1999:4. In addition, previous studies on international business travel have offered some but not strong evidence for the existence of a positive relationship between the level of international business travel and real GDP of the origin country. This study suggests that the aggregate return on business investments is a superior predictor of international business travel than GDP. The Engle-Granger and Johansen’s maximum-likelihood cointegration procedures are used to show a long-term relationship exists between Australian outbound business travel and Australian business returns, but not with Real Australian GDP. Reasons for this relationship are discussed.

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Bibliographic Info

Paper provided by University of Queensland, School of Economics in its series Economic Theory, Applications and Issues Working Papers with number 90527.

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Date of creation: Aug 2003
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Handle: RePEc:ags:uqseet:90527

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Keywords: Australia; business travel; outbound travel; theories of the firm; tourism; International Relations/Trade;

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  1. Tisdell, Clement A. & Alauddin, Mohammad, 2002. "Market-Oriented Reforms in Bangladesh and their Impact on Poverty?," Economic Theory, Applications and Issues Working Papers 90521, University of Queensland, School of Economics.
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