nep-tur New Economics Papers
on Tourism Economics
Issue of 2015‒10‒17
two papers chosen by
Laura Vici
Università di Bologna

  1. Nexus between Tourism demand and output per capita with relative importance of trade and financial development: A study of Malaysia By Shahbaz, Muhammad; Kumar, Ronald Ravinesh; Ivanov, Stanislav; Loganathan, Nanthakumar
  2. Underlying Beliefs of Behavioral Intentions Regarding Tourism Enhancement in Georgia By Heiny, Jennifer; Schmidt, Peter; Leonhäuser, Ingrid-Ute

  1. By: Shahbaz, Muhammad; Kumar, Ronald Ravinesh; Ivanov, Stanislav; Loganathan, Nanthakumar
    Abstract: This paper revisits the tourism-growth nexus in Malaysia using time series quarter frequency data over the period of 1975-2013. We examine the impact of tourism using two separate indicators – tourism receipts per capita and visitor arrival per capita. Using the augmented Solow (1956) production function and the ARDL bounds procedure, we also incorporate trade openness and financial development, and account for structural break in series. Our results show the evidence of cointegration between the variables. Assessing the long-run results using both indicators of tourism demand, it is noted that the elasticity coefficient of tourism is 0.13 and 0.10 when considering visitor arrival and tourism receipts (in per capita terms) respectively. Notably, the impact of tourism demand is marginally higher with visitor arrival. The elasticity for trade openness is 0.19, financial development is 0.09, and capital share is 0.15. In the short-run, the coefficient of tourism is marginally negative, and for financial development and trade openness, it is 0.01 and 0.18, respectively. The Granger causality tests show bi-directional causation between tourism and output per capita; financial development and tourism; and trade openness and tourism demand, duly indicating the feedback or mutually reinforcing impact between the variables, and the evidence that tourism is central to enhancing the key sectors and the overall income level.
    Keywords: tourism and output per capita; Malaysia; trade openness; financial development; tourism-led growth hypothesis
    JEL: C1
    Date: 2015–09–13
  2. By: Heiny, Jennifer; Schmidt, Peter; Leonhäuser, Ingrid-Ute
    Abstract: Especially rural areas in Post-Soviet countries are struggling at the poverty line. Additional income sources are essential. In the case of two remote rural regions in the Greater and Lesser Caucasus, one such source is the tourism sector. A structural equation model is applied to assess which influential factors determine the intention of private households to enhance activities in the tourism sector. The Theory of Planned Behavior (AJZEN, 1991) serves as the framework for the analysis. The strongest influence is exerted by subjective norm, followed by perceived behavioral control while attitude fails to have a significant effect on intention. An analysis of the underlying beliefs that guide the formation of the constructs shows that the family has the strongest influence on subjective norm, suggesting the importance of interventions that target not only the individual, but also the social aggregate. Furthermore the model indicates that bank loans can foster the perceived ability of enhancing touristic activities while personal illness is perceived as a significant threat to the behavior.
    Keywords: Theory of Planned Behavior, structural equation modeling, Georgia, tourism, private household, Community/Rural/Urban Development, Labor and Human Capital, Research Methods/ Statistical Methods,
    Date: 2015

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