Mixed frequency evidence of the tourism growth relationship in small Island developing states

A case study of Tonga

Bibliographic Data

ID12462201
AuthorsNikeel Nishkar Kumar (0000-0001-5950-1027, School of Accounting and Finance, Faculty of Business and Economics, University of the South Pacific, Suva, Fiji Islands, corresponding author), Ravinay Amit Chandra (0000-0002-6783-8188, Department of Management, School of Business and Economics, The University of Fiji, Saweni, Fiji Islands), Arvind Patel (0000-0002-3223-7585, School of Accounting and Finance, Faculty of Business and Economics, University of the South Pacific, Suva, Fiji Islands)
Year2021
Volume26
Issue3
Pages294-307
Publication date2021-02-15
Open AccessNo
TypeARTICLE
VenueAsia Pacific Journal of Tourism Research (JOURNAL)
Journal identifiersISSN: 1094-1665 • E-ISSN: 1741-6507
PublisherRoutledge (PUBLISHER • GB)
DOI10.1080/10941665.2020.1862884
OpenAlexW3132923894
LanguageEN
Citations received4
References cited73

In this study, we examine the effect of tourism on economic growth in Tonga. We apply Ghysels Beta-MIDAS approach to estimate the elasticity of tourism, identify breaks with the multiple break test, and test for causality using the mixed frequency VAR approach. We utilize a sample from 1995 quarter 1 to 2018 quarter 4. The results indicate that the long-run effect of tourism is 0.06. Two structural breaks are identified, and both have negative growth effects. Unidirectional causality from tourism to real per-capita GDP is noted. The findings indicate that Tonga’s economic growth can be improved by promoting tourism

Causality (physics · Econometrics · Economic geography · Economics · Geography · Granger causality · Per capita · Quarter (Canadian coin · Sample (material · Structural break · Tourism · Demography · Diverse Aspects of Tourism Research · Energy, Environment, Economic Growth · Fiscal Policy and Economic Growth

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