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A Panel Cointegration Analysis: An Application To International Tourism Demand Of Thailand

Author

Listed:
  • Chukiat Chaiboonsri

    () (Chiang Mai University, Thailand)

  • Jittaporn Sriboonjit

    (Thammassat University, Thailand)

  • Thanes Sriwichailamphan

    (Chiang Mai University, Thailand)

  • Prasert Chaitip

    (Chiang Mai University, Thailand)

  • Songsak Sriboonchitta

    (Chiang Mai University, Thailand)

Abstract

This paper sought to find the long-run relationships between international tourist arrivals in Thailand and economic variables such as GDP, transportation cost and exchange rates during period of 1986 to 2007. Also this paper used five standard panel unit root tests such as LLC (2002) panel unit root test, Breitung (2000) panel unit root test, IPS (2003) panel unit root test, Maddala and Wu (1999) and Choi (2001) panel unit root test and Handri (1999) panel unit root test. Moreover, the panel cointegration test based on Pedroni residual cointegration tests, Kao residual cointegration tests and Johansen fisher panel cointegration test were used to test in panel among the variables. The OLS estimator, DOLS estimator and FMOLS estimator were used to find the long-run relationship of the international tourism demand model for Thailand. The long-run results indicated that growth in income (GDP) of Thai’s Asia major tourist source markets (Malaysia, Japan, Korea, China, Singapore and Taiwan) have a positive impact on international tourists arrival to Thailand. In addition, the transportation cost of these countries has negative impact on the number of international tourist arrivals to Thailand. Finally Thailand’s currency has positive impact on the number of international tourist arrivals to Thailand. Most of findings from this study were consistent with economic theory and the implications of the model can be use for policy making.

Suggested Citation

  • Chukiat Chaiboonsri & Jittaporn Sriboonjit & Thanes Sriwichailamphan & Prasert Chaitip & Songsak Sriboonchitta, 2010. "A Panel Cointegration Analysis: An Application To International Tourism Demand Of Thailand," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 10(3), pages 69-86.
  • Handle: RePEc:pet:annals:v:10:y:2010:i:3:p:69-86
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:renene:v:113:y:2017:i:c:p:52-63 is not listed on IDEAS
    2. M. Tahir Suleman & M. Talha Amin, 2015. "The Impact of Sectoral Foreign Direct Investment on Industrial Economic Growth of Pakistan," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 2(1), pages 102-123, March.
    3. Ruxandra-Irina POPESCU & Rãzvan-Andrei CORBOª, 2013. "“Amazing Thailand” – Its Contribution To Growing The Country’S Competitiveness," Proceedings of Administration and Public Management International Conference, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 9(1), pages 220-234, June.
    4. repec:rom:campco:v:9:y:2013:i:1:p:220-234 is not listed on IDEAS
    5. Chhorn, Theara, 2017. "On the Investigation of Factors Effecting International Tourist Arrivals to Cambodian Market: A Static and Dynamic Gravity Approach," MPRA Paper 83813, University Library of Munich, Germany, revised 18 Jul 2017.
    6. Bouzahzah, Mohamed & El Menyari, Younesse, 2012. "Les déterminants de la demande touristique: le cas du Maroc
      [Determinants of tourism demand: the case of Morocco]
      ," MPRA Paper 39029, University Library of Munich, Germany, revised 25 May 2012.
    7. Komkrit Wongkhae & Songsak Sriboonchitta & Kanchana Choketaworn & Chukiat Chaiboonsri, 2012. "Does price matter? The FMOLS and DOLS estimation of industrial countries tourists outbound to four ASEAN countries," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 1(4), pages 107-128, December.
    8. repec:gei:journl:v:2:y:2015:i:1:p:151-165 is not listed on IDEAS

    More about this item

    Keywords

    Thailand; tourism demand; Panel Unit Root Test; Panel Cointergration Test; long-run relationship;

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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