nep-tur New Economics Papers
on Tourism Economics
Issue of 2018‒05‒28
one paper chosen by
Laura Vici
Università di Bologna

  1. Modeling the Long-Run Relationship Between Exchange Rate-Tourism Pass-Through and Growth: The Case of Nigeria? By Nduka, Eleanya K.

  1. By: Nduka, Eleanya K.
    Abstract: This study was motivated by the urgent need to diversify the Nigerian economy away from oil. The economy has since the 1970s relied on revenue from oil with attendant consequences from oil price swings. Thus, the study employs the relatively new Bounds testing approach of Pesaran, Shin, and Smith (2001) with the critical values and approximate p-values developed by Kripfganz and Schneider (2018), to test the effect of exchange rate-tourism pass-through effect on growth. In the literature, the tourism-led growth has been studied for various countries. However, this study is the first to investigate the impact of exchange rate-tourism pass-through effect on growth in addition to testing their main effects. And it reveals for the first time, an exchange rate-tourism-led growth. Thus, Nigeria should adopt sound policies in the tourism sector that would make it possible to take advantage of the naira depreciation.
    Keywords: Exchange rate, Tourism, Pass-through, Growth, Sector, Diversification.
    JEL: O13
    Date: 2018–05–07

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