Journal article
Tourism and the Output Gap
Journal of Travel Research, Vol.58(4), pp.608-621
2019
Abstract
This article investigates the impact of tourism arrivals on a host country's output gap, defined as the difference between actual gross domestic product (GDP) and trend GDP. Using panel data methods that account for the potential endogeneity of tourism and the business cycle, and the possible nonstationarity of tourism arrivals, the results show that an increase in tourism arrivals significantly improves the output gap of the host country. Quantitatively, a 10% increase in arrivals in a given year improves the output gap in that year by approximately 0.2% of actual GDP. There is, however, no evidence of a lagged effect of tourism. Based on this empirical evidence, the article concludes that tourism is a mechanism through which the domestic economy can take advantage of positive shocks happening elsewhere in the world. In this sense, tourism can contribute to the synchronization of business cycles between destination and origin countries.
Details
- Title
- Tourism and the Output Gap
- Authors
- Fabrizio Carmignani (Author) - Griffith UniversityChar-lee Moyle (Author) - University of the Sunshine Coast - Faculty of Arts, Business and Law
- Publication details
- Journal of Travel Research, Vol.58(4), pp.608-621
- Publisher
- Sage Publications Inc.
- Date published
- 2019
- DOI
- 10.1177/0047287518769760
- ISSN
- 0047-2875
- Organisation Unit
- University of the Sunshine Coast, Queensland
- Language
- English
- Record Identifier
- 99451225802621
- Output Type
- Journal article
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- Collaboration types
- Domestic collaboration
- Web Of Science research areas
- Hospitality, Leisure, Sport & Tourism
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Source: InCites