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Investigating stationarity in tourist arrivals to India using panel KPSS with sharp drifts and smooth breaks

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  • Hong Xie
  • Aviral Kumar Tiwari
  • Tsangyao Chang

Abstract

In the study, we applied panel-based stationary test that incorporates sharp as well as smooth breaks to investigate the non-stationarity of long-run tourists’ arrivals to India from major tourists’ source countries for the period 1981–2012. Results from the overall panel data provided significant evidence to support the stationarity hypothesis. However, when tourist arrivals from major source countries are considered, results indicate that tourist arrivals in India from the UK, Canada, Australia, Singapore, and Nepal were non-stationary, suggesting that tourists from these countries are all affected by economic conditions with the greatest extent. The results of the study have important policy implication for the tourist authority of India as well as business sectors in the hospitality industry for understanding and predicting market condition.

Suggested Citation

  • Hong Xie & Aviral Kumar Tiwari & Tsangyao Chang, 2018. "Investigating stationarity in tourist arrivals to India using panel KPSS with sharp drifts and smooth breaks," Applied Economics, Taylor & Francis Journals, vol. 50(46), pages 4985-4998, October.
  • Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:4985-4998
    DOI: 10.1080/00036846.2018.1466988
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    Cited by:

    1. Nicholas Apergis & Chi Keung Lau, 2022. "Hotel Revenue Convergence: Evidence Across Star Hotels in Chinese Provinces," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 50(1), pages 37-51, June.
    2. James E Payne & Junsoo Lee, 2024. "Global perspective on the permanent or transitory nature of shocks to tourist arrivals: Evidence from new unit root tests with structural breaks and factors," Tourism Economics, , vol. 30(1), pages 67-103, February.
    3. Lin, Zhibin & You, Kefei & Lau, Chi Keung & Demir, Ender, 2019. "Segmenting global tourism markets: A panel club convergence approach," Annals of Tourism Research, Elsevier, vol. 75(C), pages 165-185.

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