An Ardl Model Of Tourism Demand For Malaysia
This paper investigates the long-run and short-run relationships among tourists’ arrival to Malaysia, tourism price, substitute price, traveling cost, income and exchange rate for ASEAN-4 countries for the period 1970 to 2004 using the bounds testing cointegration procedures. The results show that tourism price, traveling cost, substitute price and income are the major determinants of Malaysia’s tourism demand. In the short run, repeat tourists, world economic crises and the outbreak of Severe Acute Respiratory Syndrome (SARS) significantly influence the demand for Malaysia’s tourism. The paper also employed the Ramsey Reset and CUSUM-Square tests to test for the functional form and stability of the tourism demand function.
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Volume (Year): 15 (2007)
Issue (Month): 1 (June)
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