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Are Australia's tourism markets converging?

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  • Paresh Kumar Narayan

Abstract

In this paper we make an important contribution towards understanding Australia's tourism industry by examining whether or not Australia's tourism markets are converging. We define convergence as the reduction in tourist arrivals' differential, which is calculated as the difference between total visitor arrivals to a country and visitor arrivals from a particular tourist source market. We analyze Australia's thirteen major tourist source markets using monthly data over the period January 1991 to September 2003. To test for convergence, we use the univariate and panel Lagrange multiplier (LM) tests. Our main finding is that when we allow for two structural breaks in the data series, both univariate and panel LM tests provide strong evidence for convergence of Australia's tourism markets. This implies that policies aimed at attracting visitor arrivals from any one of Australia's thirteen tourist source markets will boost the volume of tourists coming into the country.

Suggested Citation

  • Paresh Kumar Narayan, 2006. "Are Australia's tourism markets converging?," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1153-1162.
  • Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1153-1162
    DOI: 10.1080/00036840500391377
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    References listed on IDEAS

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    10. Paresh Kumar Narayan, 2005. "The structure of tourist expenditure in Fiji: evidence from unit root structural break tests," Applied Economics, Taylor & Francis Journals, vol. 37(10), pages 1157-1161.
    11. Jewell, Todd & Lee, Junsoo & Tieslau, Margie & Strazicich, Mark C., 2003. "Stationarity of health expenditures and GDP: evidence from panel unit root tests with heterogeneous structural breaks," Journal of Health Economics, Elsevier, vol. 22(2), pages 313-323, March.
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    Cited by:

    1. Mishra, Vinod & Smyth, Russell, 2014. "Convergence in energy consumption per capita among ASEAN countries," Energy Policy, Elsevier, vol. 73(C), pages 180-185.
    2. repec:ers:journl:v:xx:y:2017:i:4a:p:707-729 is not listed on IDEAS
    3. Lau, Evan & Oh, Swee-Ling & Hu, Sing-Sing, 2008. "Tourist Arrivals And Economic Growth In Sarawak," MPRA Paper 9888, University Library of Munich, Germany.
    4. repec:ers:journl:v:xx:y:2017:i:3b:p:679-693 is not listed on IDEAS
    5. Abdul-Rahim, A.S. & Mohd-Shahwahid, H.O., 2012. "Sustainable forest management policy and the analysis of convergence effects on timber production," Forest Policy and Economics, Elsevier, vol. 22(C), pages 60-64.
    6. Burcu Ozcan, 2014. "Do Tourism Markets Of Turkey Converge?," Proceedings of International Academic Conferences 0200630, International Institute of Social and Economic Sciences.
    7. repec:eee:touman:v:33:y:2012:i:3:p:537-544 is not listed on IDEAS
    8. Pei-Chien Lin & Ho-Chuan Huang, 2012. "Convergence in income inequality? evidence from panel unit root tests with structural breaks," Empirical Economics, Springer, vol. 43(1), pages 153-174, August.
    9. García-Cintado, Alejandro & Romero-Ávila, Diego & Usabiaga, Carlos, 2015. "Can the hysteresis hypothesis in Spanish regional unemployment be beaten? New evidence from unit root tests with breaks," Economic Modelling, Elsevier, vol. 47(C), pages 244-252.
    10. Tiwari, Aviral Kumar, 2016. "Whether tourist arrivals in India convergent?," Annals of Tourism Research, Elsevier, vol. 61(C), pages 252-255.
    11. repec:eee:touman:v:57:y:2016:i:c:p:225-233 is not listed on IDEAS

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