Temporal Granger causality and the dynamics examination on the tourism-growth nexus in Malaysia
AbstractThis study applied the cointegration, error-correction modelling and persistence profile to analyse the dynamic relationship between real tourism receipts, real income and real exchange rate in Malaysia. This study covers the annual sample period from 1974 to 2009. This study finds that the variables are cointegrated. In the short run, this study finds that neutrality causality between real tourism receipts and real income, while they are bi-directional Granger causality in the long run. Nevertheless, this study finds uni-directional causality running from real exchange rate to real tourism receipts and real income in both short- and long run.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 29237.
Date of creation: Mar 2011
Date of revision:
Causality; Exchange rate; Malaysia; Tourism-led growth; Persistence profile;
Find related papers by JEL classification:
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-19 (All new papers)
- NEP-FDG-2011-03-19 (Financial Development & Growth)
- NEP-TUR-2011-03-19 (Tourism Economics)
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