Drivers of Growth in the Travel and Tourism Industry in Malaysia: A Geweke Causality Analysis

Khee Giap Tan, Sasidaran Gopalan and Ye Ye
Additional contact information
Ye Ye: Asia Competitiveness Institute, Lee Kuan Yew School of Public Policy, National University of Singapore, Singapore 259770, Singapore

Economies, 2016, vol. 4, issue 1, 1-15

Abstract: The travel and tourism industry has been growing in importance for several developing countries. It has not only generated considerable foreign exchange revenues but has also contributed to the overall output and socio-economic development of these countries. Within the Asia and Pacific region, data for 2014 indicates that Malaysia was ranked very highly at no. 26 out of the 184 countries in the world in terms of the relative importance of the contribution of the travel and tourism industry to its national output. In this light, this paper aims to undertake an empirical examination of the factors driving international tourist arrivals into Malaysia. The paper attempts to identify the causal determinants of the growth of the travel and tourism industry, using quarterly data from 2000 to 2012, under a Geweke causality framework. The empirical results suggest Malaysia’s government expenditures on tourism promotion as well as infrastructure investments such as enhancing airport facilities are causal and significant determinants of growth in the travel and tourism industry.

Keywords: Geweke causality; economic growth; travel and tourism; Malaysia; competitiveness (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2227-7099/4/1/3/pdf (application/pdf)
https://www.mdpi.com/2227-7099/4/1/3/ (text/html)

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:gam:jecomi:v:4:y:2016:i:1:p:3-:d:64547

Access Statistics for this article

Economies is currently edited by Ms. Adore Zhou

More articles in Economies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().