Exchange Rate Exposure: Does exchange rate movement influence tourism development?

Abdullah, AbdulQadir Idris and Chua, Soo Yean (2017) Exchange Rate Exposure: Does exchange rate movement influence tourism development? In: Social Sciences Postgraduate International Seminar (SSPIS) 2017. School of Social Sciences, USM, Pulau Pinang, Malaysia, pp. 336-343. ISBN 9789671544013

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Abstract

This paper examines the impact of exchange rate exposure on tourism demand using a dynamic panel of 23 sub Saharan Africa’s tourist destinations. Although, the research question for the paper focuses on whether uncertainty on the exchange rate can help explain why could exchange rate fluctuation co-move with the travel expenditure using data from these selected African tourist destinations as well as the variations across countries in recent years. Utilising annual data from 1996 to 2015 on dynamic panel estimation techniques, we provide evidence which suggests that both variables exchange rate fluctuation and travel expenditure are statistically significant determinants of tourism demand. The Penal autoregressive distributed lagged ARDL panel cointegration test is utilised to examine the existence of a long run association between exchange rate and travel expenditure and the findings from the panel cointegration test reveals that real income, real xchange rates, price inflation and travel expenditure and international tourist arrival have long run relationship. We also employed pool (OLS), fixed effect (FE) and random effect (RE) models to investigate which of the models in questions can at most have useful information to explain tourism demand subject to travel expenditure with respect to the selected sampled tourist destinations in Africa.

Item Type: Book Section
Subjects: H Social Sciences > H Social Sciences (General) > H1-99 Social sciences (General)
Divisions: Pusat Pengajian Sains Kemasyarakatan (School of Social Sciences) > Social Sciences Postgraduate International Seminar (SSPIS)
Koleksi Penganjuran Persidangan (Conference Collection) > Social Sciences Postgraduate International Seminar (SSPIS)
Depositing User: Puan Sukmawati Muhamad
Date Deposited: 30 May 2018 01:02
Last Modified: 30 May 2018 01:02
URI: http://eprints.usm.my/id/eprint/40638

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