The linear and non-linear relationship between of tourism demand and output per worker: A study of Sri Lanka

Kumar, Ronald Ravinesh & Stauvermann, Peter Josef (2016) The linear and non-linear relationship between of tourism demand and output per worker: A study of Sri Lanka. Tourism Management Perspectives, 19(A), pp. 109-120.

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Abstract

Linear and non-linear long-run association between tourism and economic growth is examined using the autoregressive distributed lag procedure with Sri Lanka as a reference country over the sample period 1978– 2014. Linear estimation results indicate that a 1% increase in tourism receipts result in an increase in the output per worker by 0.10% in the long run. The net effect in the short run is marginally negative and generally mixed. Non-linear relationship explains the effectiveness of the tourism industry depends strongly on public infrastructure which is subject to congestion like the public transport, airports, road system or telecommunications. A long run U-shape relationship is detected with the minimum necessary tourism receipts of 1.26% of GDP. The causality results indicate that higher tourism receipts causes growth. The method applied here can be used to examine other countries in the similar domain.

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ID Code: 95995
Item Type: Journal Article
Refereed: Yes
Keywords: Tourism demand analysis; Elasticity; Cointegration; Non-linear; Causality; Sri Lanka
DOI: 10.1016/j.tmp.2016.05.005
ISSN: 2211-9736
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200) > Tourism Economics (140216)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Copyright Owner: Copyright 2016 Elsevier Ltd.
Deposited On: 07 Jun 2016 22:17
Last Modified: 09 Jun 2016 01:44

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