Analysis of Tourist Flow from the US to Taiwan

Yen-Hsun Chen () and Hsin-Hong Kang ()
Additional contact information
Yen-Hsun Chen: Department of Business Administration, National Cheng Kung University, No. 1, University Road, Tainan City 701, Taiwan, R.O.C.
Hsin-Hong Kang: Department of Business Administration, National Cheng Kung University, No. 1, University Road, Tainan City 701, Taiwan, R.O.C.

Acta Oeconomica, 2015, vol. 65, issue supplement2, 369-384

Abstract: It is important for Taiwanese policy makers to understand how economic factors affect US tourists’ decision to travel to Taiwan. For the long-run analysis, Johansen’s cointegration test reveals that three cointegration vectors exist among the model variables, indicating a long-run relationship. To conduct a short-run analysis, this paper employs vector auto regression (VAR) to estimate the responses of US tourists in Taiwan to the shocks of changes to personal disposable income, cost of living, and substitute price. The short-run equilibrium adjustment processes are discussed in terms of generalized impulse response. The results show an immediate and significant response of changes in tourist arrivals to their own impacts, changes in the cost of living, and changes in the substitute price. In addition, the price, income, and cross-elasticity of tourism demand are all positive at the beginning of the responses, implying that the tourism products can be attributed to normal and substitute goods.

Keywords: tourist flow; VAR; generalized impulse response; Taiwan (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.akademiai.com/doi/pdf/10.1556/032.65.2015.S2.27 (application/pdf)
subscription

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aka:aoecon:v:65:y:2015:i:supplement2:p:369-384

Ordering information: This journal article can be ordered from
Akadémiai Kiadó Zrt., P. O. Box 245, H-1519 Budapest, Hungary
https://akjournals.com/

Access Statistics for this article

Acta Oeconomica is currently edited by Mihályi, Péter

More articles in Acta Oeconomica from Akadémiai Kiadó, Hungary
Bibliographic data for series maintained by Kriston, Orsolya ().