Macroeconomic impacts of the tourism industry and the contemporaneous feedback effect: an Australian case study

Chaiechi, Taha, Pryce, Josephine, and Bhati, Abhishek (2015) Macroeconomic impacts of the tourism industry and the contemporaneous feedback effect: an Australian case study. Tourism Economics, 21 (3). pp. 685-696.

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Abstract

The aim of this paper is to demonstrate methods for analysing the dynamic impact of the tourism sector on key drivers of economic growth for destinations in Australia, while allowing for simultaneity of economic variables. The tourism sector is captured through the proxy of 'tourism receipts'. In addition, investment and productivity growth are selected as sources of economic growth, in accordance with Post-Keynesian growth theory. The paper uses time series quarterly data, covering the period 1995:Q1–2011:Q4, and employs time series estimation techniques, including Structural Vector Autoregressive modelling and impulse response analysis, to describe the macroeconomic responses to sudden shocks in the tourism sector. The results indicate that the growth benefits of an increase in tourist expenditure are positive and statistically significant. Moreover, as suggested by the analysis of impulse response functions, a positive shock to tourist expenditure provides positive, substantial and rather long-lived implications regarding productivity and investment decisions.

Item ID: 30930
Item Type: Article (Refereed Research - C1)
Keywords: time series analysis, structural VAR, impulse response analysis, tourism expenditure, investment, productivity growth
ISSN: 2044-0375
Date Deposited: 23 Jan 2014 06:03
FoR Codes: 14 ECONOMICS > 1402 Applied Economics > 140216 Tourism Economics @ 50%
14 ECONOMICS > 1403 Econometrics > 140305 Time-Series Analysis @ 50%
SEO Codes: 91 ECONOMIC FRAMEWORK > 9101 Macroeconomics > 910103 Economic Growth @ 50%
90 COMMERCIAL SERVICES AND TOURISM > 9003 Tourism > 900301 Economic Issues in Tourism @ 40%
91 ECONOMIC FRAMEWORK > 9104 Management and Productivity > 910402 Management @ 10%
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