The cointegration and causality tests for tourism and trade in Malaysia

Kadir, Norsiah and Jusoff, Kamaruzaman (2010) The cointegration and causality tests for tourism and trade in Malaysia. International Journal of Economics and Finance, 2 (1). pp. 138-143. ISSN 1916-9728

Full text not available from this repository.

Official URL: http://ccsenet.org/journal/index.php/ijef/article/view/4951/4115

Abstract

This paper examines the relationship between tourism and trade that might have evolved in the development of Malaysian economy by using cointegration and causality tests. All analyses have been conducted with quarterly data of international tourism receipts, exports, imports and total trade of Malaysia, over the period of 1995:1 through 2006:4. The results of the unit root tests indicate that the data are stationary in first-difference and not in level. The results of the JJ co integration test however, show that all the series are not cointegrated in the long run, hence, long-run equilibrium did not exist between all the series. Using Granger-causality tests the study found that there is one-way causal effect (unidirectional causality) running from exports to international tourism receipts at 5% significance level. The causality test also shows a one-way causal effect running from imports to international tourist receipts at 5% significance level and total trade to international tourism receipts at 10% significance level. This leads to a conclusion that increase in total trade, exports and imports will cause growth in the tourism sector, which means that most of tourist arrivals are related to business tourism. Therefore, to increase and sustain in the growth of tourism sector, future economic policy should focus more on tourism and trade related, in order to generate more foreign exchange earning to Malaysia

Item Type:Article
Keyword:Tourism; Trade; Cointegration test; Causality test; Malaysia
Subject:Tourism - Research
Subject:Tourism - Economic aspects
Subject:Cointegration
Faculty or Institute:Faculty of Forestry
Publisher:Canadian Center of Science and Education
ID Code:17037
Deposited By: Norhazura Hamzah
Deposited On:22 Jun 2012 04:36
Last Modified:27 Mar 2013 08:59

Repository Staff Only: item control page

Document Download Statistics

This item has been downloaded for since 22 Jun 2012 04:36.

View statistics for "The cointegration and causality tests for tourism and trade in Malaysia"


Universiti Putra Malaysia Institutional Repository

Universiti Putra Malaysia Institutional Repository is an on-line digital archive that serves as a central collection and storage of scientific information and research at the Universiti Putra Malaysia.

Currently, the collections deposited in the IR consists of Master and PhD theses, Master and PhD Project Report, Journal Articles, Journal Bulletins, Conference Papers, UPM News, Newspaper Cuttings, Patents and Inaugural Lectures.

As the policy of the university does not permit users to view thesis in full text, access is only given to the first 24 pages only.