THE ROLE OF SUSTAINABLE COMPETITIVENESS INDICATOR IN MALAYSIAN TOURISM AND ECONOMIC GROWTH

Ann-Ni Soh, Chin-Hong Puah, Affendy Arip Mohammad and Meng-Chang Jong
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Ann-Ni Soh: Universiti Malaysia Sarawak, 94300 Kota Samarahan, Malaysia
Affendy Arip Mohammad: Universiti Malaysia Sarawak, 94300 Kota Samarahan, Malaysia
Meng-Chang Jong: Universiti Malaysia Sarawak, 94300 Kota Samarahan, Malaysia

Studies in Business and Economics, 2024, vol. 19, issue 3, 228-240

Abstract: This paper proposes a sustainable competitiveness indicator for the state of tourism vulnerability in the Malaysian tourism market. Further investigation has also been done on the time-frequency and lead-lag relationship of the indicator with tourism development and economic growth. The resultant indicator is consisted of 12 variables, identified based on the pillars of sustainability and competitiveness to extract a common vulnerability component using a dynamic approximate factor model. The model’s accuracy rate was at a promising 92% based on the variable importance assessment using random forest algorithms. Through the implementation of bivariate wavelet coherence analysis, the empirical results indicated that the constructed indicator has a positive leading role in Malaysian tourism development and economic growth. This indicator can be embedded within an early warning system to signify vulnerabilities in the Malaysian tourism market.

Keywords: Competitiveness; sustainable development; sustainable competitiveness; tourism growth; indicator (search for similar items in EconPapers)
Date: 2024
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