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Does international tourism spur international trade and output? Evidence from wavelet analysis

Author

Listed:
  • Mukesh Kumar

    (Indian Institute of Management Amritsar, India)

  • Sanjeev Prashar

    (Indian Institute of Management Raipur, India)

  • RK Jana

    (Indian Institute of Management Raipur, India)

Abstract

In this article, we attempt to examine the nexus of trade, economic growth, and international tourism. We resort to wavelet-based analysis to capture the time–frequency-based lead–lag dynamics of this nexus. Considering the monthly data spanning from January 1999 to February 2018 for the United States, we find the evidence that (a) increasing trade leads to higher tourist inflows (in terms of receipts), (b) tourist receipts are lagged by economic growth, and (c) these relationships are significant in the long term. We believe that these results are crucial for policymakers to frame policies regarding tourism in the United States.

Suggested Citation

  • Mukesh Kumar & Sanjeev Prashar & RK Jana, 2019. "Does international tourism spur international trade and output? Evidence from wavelet analysis," Tourism Economics, , vol. 25(1), pages 22-33, February.
    • Handle: RePEc:sae:toueco:v:25:y:2019:i:1:p:22-33
    DOI: 10.1177/1354816618788392
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    References listed on IDEAS

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    1. Shekhar Mishra & Avik Sinha & Arshian Sharif & Norazah Mohd Suki, 2020. "Dynamic linkages between tourism, transportation, growth and carbon emission in the USA: evidence from partial and multiple wavelet coherence," Current Issues in Tourism, Taylor & Francis Journals, vol. 23(21), pages 2733-2755, November.
    2. Odhiambo, Nicholas M & Saungweme, Talknice, 2021. "Does international tourism spur international trade in SSA countries? A dynamic panel data analysis," Working Papers 28345, University of South Africa, Department of Economics.
    3. Sudeshna Ghosh & Tomiwa Sunday Adebayo, 2024. "The effect of world policy uncertainty and geopolitical risk factors on export-led growth for Japan: novel insights by wavelet local multiple correlation methods," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(4), pages 3605-3633, August.
    4. Wenwen Zhang & Yi-Bin Chiu, 2020. "Globalization, Country Risks, and Trade in Tourism Services: Evidence from China," Sustainability, MDPI, vol. 12(14), pages 1-26, July.

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