A Long-run Equilibrium Demand Function: Tourism in Mexico
AbstractTourism demand in Mexico is around 80 percent represented by USA visitors. The goal of this paper is to explain the long-term effects of Tourism Demand in Mexico with respect to US visitors. To reach our goal the methodology of this paper follows the Johansen cointegration analysis and using annual time-series data, a single equation is estimated. With the empirical analyze, we study the tourism demand elasticities considering public investment, relative prices of tourist products, and US income per capita. Further analysis shows only one direction of a strongly positive Granger-causality going from number of tourists to the relative prices. We show that US income positively affects the Mexican tourism demand.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 25375.
Date of creation: 10 Sep 2007
Date of revision: 25 Jan 2008
Publication status: Published in TOURISMOS: An International Multidisciplinary Refereed Journal of Tourism 1.3(2008): pp. 66-82
Tourism demand modelling; Public investment on tourism; Economics of Tourism; Johansen Cointegration test;
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- M1 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
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