|
on Tourism Economics |
| By: | Chia-Lin Chang (Department of Applied Economics Department of Finance National Chung Hsing University, Taiwan); Hui-Kuang Hsu (Department of Finance and Banking National Pingtung Institute of Commerce, Taiwan); Michael McAleer (Econometric Institute Erasmus School of Economics Erasmus University Rotterdam and Tinbergen Institute, The Netherlands and Institute of Economic Research Kyoto University, Japan and Department of Quantitative Economics Complutense University of Madrid, Spain) |
| Abstract: | This paper examines the size effects of volatility spillovers for firm performance and exchange rates with asymmetry in the Taiwan tourism industry. The analysis is based on two conditional multivariate models, BEKK-AGARCH and VARMA-AGARCH, in the volatility specification. Daily data from 1 July 2008 to 29 June 2012 for 999 firms are used, which covers the Global Financial Crisis. The empirical findings indicate that there are size effects on volatility spillovers from the exchange rate to firm performance. Specifically, the risk for firm size has different effects from the three leading tourism sources to Taiwan, namely USA, Japan, and China. Furthermore, all the return series reveal quite high volatility spillovers (at over sixty percent) with a one-period lag. The empirical results show a negative correlation between exchange rate returns and stock returns. However, the asymmetric effect of the shock is ambiguous, owing to conflicts in the significance and signs of the asymmetry effect in the two estimated multivariate GARCH models. The empirical findings provide financial managers with a better understanding of how firm size is related to financial performance, risk and portfolio management strategies that can be used in practice. |
| Keywords: | Tourism, Size effects, Small-firm effects, Financial performance, Spillover effects, MGARCH, VARMA, BEKK. |
| JEL: | C22 G32 L83 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:kyo:wpaper:839&r=tur |
| By: | Andres Cardenas O'Farrill |
| Abstract: | This article sets out to examine the growth strategy promoted by the Cuban government in the aftermath of the economic crisis of the 90s. This crisis, catalyzed by the collapse of the Soviet Union and Eastern European communism, imposed on Cuba the need for both new interna-tional insertion patterns and therefore a redesign of its development strat-egy. Without reaching the pre-crisis levels, this strategy led, however, to a significant recovery of GDP during the period 1994-2008. Nevertheless, the stagnation of the tourism industry and the fluctuation of international nickel prices have made it necessary to rethink the current development strategy. Here it is argued that the strategy of mostly relying on low-tech-, natural-resource- or service-based activities will not raise the life standards of the Cuban population. A sustainable development strategy in the long term means to upgrade and introduce industries, such as bio-technology, which contain manufacturing capabilities that can prove competitive on the international level. This is consistent with the histori-cal evidence on economic development and innovation; but also with the performance shown by the Cuban economy during the last 20 years. |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:tth:wpaper:45&r=tur |
| By: | Hultkrantz, Lars (Department of Business, Economics, Statistics and Informatics) |
| Abstract: | High-Speed Rail (HSR) is designed for travelers with high value of time. HSR offer fast and reliable services and good possibilities for work during the journey. Surprisingly, these benefits of HSR investment proposals are often appraised by use of travel-time valuations of people who use conventional (intercity) train services. The standard approach builds on two major assumptions, linearity of demand, and that the value of time is unchanged between the “before” and “after” alternatives, i.e., that change in the average value of time of passengers can be ignored. While the first of these is well known, the second is not always observed. However, the spread of values of time between individual travelers is large and is an essential motivation for HSR investments. This note therefore considers whether the assumption that the value of time remains unchanged by the speed improvement induces any significant bias in the appraisal. We first use a modal-mix model where travelers have varying value of time to outline some conceptual points and then discuss to what extent these may affect the social profitability of three recently constructed or proposed HSR lines: Oslo- Stockholm (Norway and Sweden), Stockholm-Göteborg (Sweden) and Beijing-Shanghai Hongqiao (China). We conclude that a RoHbased evaluation of an HSR line should be complemented by a sensitivity analysis of how the outcome is affected by possible changes of the composition of travelers with different values of time. |
| Keywords: | Cost-benefit analysis; rule-of-a-half; high-speed rail |
| JEL: | D61 H43 L92 |
| Date: | 2012–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:oruesi:2012_013&r=tur |
| By: | Nikolov, Dimitre; Radev, Teodor; Borisov, Petar |
| Abstract: | This paper aims to make an evaluation of CAP contribution to landscape management in Bulgarian economy of rural areas. To sum up, landscape is a non-commodity output produced as direct or indirect outcome of the activities operating in a particular area and it is valued by society for its functions (use and non use values, ecological, recreational, cultural etc). Due to this complex nature, it produces second-order effects that are captured by the stakeholders in rural areas (farmers or others), and that generate potential markets for new activities. Therefore, through the generation of these effects, landscape contributes to boosting the economy of rural areas and is an important driver for the whole regional economy. The research reported in this paper was funded by the European Commission within the project “ Supporting the role of the Common agricultural policy in Landscape valorisation: Improving the knowledge base of the contribution of landscape Management to the rural economy” (CLAIM), 7th Framework Programme, contract n. 222738 (www.claimproject.eu). The Rural Development Programmes of the current period (2007-2013) support measures that can have an added value for this new perspective of the policy. Some of them such as the agrienvironmental payments and the measures designed for less favoured areas can have direct and indirect effects in the provision of landscape. Additionally they have effects in delivering landscape as environmental public good, playing also an important role in terms of financial allocation in the current Rural Development Programme. The analysis of existing specific measures targeted at local level connected to the landscape allow to distinguish supporting potential landscape-related activities and it’s role at the economy of rural areas. |
| Keywords: | Agricultural and Food Policy, |
| Date: | 2012–10–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa132:139498&r=tur |
| By: | Tisdell, Clement A. |
| Abstract: | The importance of taking account of the total economic value of ecosystems is stressed and the possible reasons why the Millennium Ecosystem Assessment (2005) emphasised the importance of ecosystem services for biodiversity conservation is discussed. It is suggested that the Millennium Ecosystem Assessment does not give enough attention to the disservices association with some ecosystems nor to the comparisons of the value of alternative ecosystems. Reasons why it is important to estimate the total economic value of ecosystems are outlined. It is argued that the economic valuation of ecosystems is of little value unless it compares the economic value of alternative ecosystems or forms of land use. Most published economic valuations of ecosystems fail to do this or only do it to a very limited extent. The cost of replacing ecosystem services if an ecosystem is lost is sometimes used to value its services. In most cases (but not all cases), this tends to over value the loss. This is illustrated using some simple graphs. There is also the further complication that if one type of ecosystem is replaced by another form of land or aquatic use, some ecosystem services may continue to be supplied, possibly in reduced quantities or qualities. In such cases, assuming that the pre-existing services are totally lost and need to be replaced completely overstates the economic value lost, or in other words, the value of retaining an existing ecosystem. |
| Keywords: | biodiversity conservation, cost of replacement method of valuation, economic valuation of ecosystems, ecosystem services, Millennium Ecosystem Assessment, total economic valuation, Environmental Economics and Policy, Q01, Q51, Q57, |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uqseee:140550&r=tur |