Tourism-Led Growth Hypothesis in Malaysia: Evidence Based Upon Regime Shift Cointegration and Time-Varying Granger Causality Techniques

Tang, Chor Foon and Tan, Eu Chye (2015) Tourism-Led Growth Hypothesis in Malaysia: Evidence Based Upon Regime Shift Cointegration and Time-Varying Granger Causality Techniques. Asia Pacific Journal of Tourism Research, 20 (1). pp. 1430-1450. ISSN 1094-1665

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Official URL: https://doi.org/10.1080/10941665.2014.998247

Abstract

This article examines the tourism-led growth (TLG) hypothesis in Malaysia based upon quarterly data from 1991:Q1 to 2014:Q1. The Johansen-Juselius cointegration and the regime shift cointegration tests consistently show evidence of cointegration. In addition, we find evidence of unidirectional causality from tourism to economic growth in Malaysia. Furthermore, the rolling Granger causality test confirms that the TLG hypothesis is generally valid and stable in Malaysia. Therefore, tourism is an effective long-term engine of growth. Policies to promote tourism would effectively invigorate Malaysia's long-term economic growth and development in Malaysia.

Item Type: Article
Uncontrolled Keywords: Cointegration; Tourism-led growth hypothesis; Rolling regression; Malaysia
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HC Economic History and Conditions
Divisions: Faculty of Economics & Administration
Depositing User: Mrs. Siti Mawarni Salim
Date Deposited: 26 Jul 2016 02:44
Last Modified: 11 Feb 2019 06:17
URI: http://eprints.um.edu.my/id/eprint/16129

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