The Causal Relationship between Tourist Arrivals and Economic Growth Evidence from Indonesia

Muhamad Fadilah (), Haryo Kuncoro () and K Dianta Sebayang ()
Additional contact information
Muhamad Fadilah: Faculty of Economics State University of Jakarta Indonesia, Postal: ID
Haryo Kuncoro: Faculty of Economics State University of Jakarta Indonesia, Postal: ID
K Dianta Sebayang: Faculty of Economics State University of Jakarta Indonesia, Postal: ID

Journal of Advanced Research in Management, 2018, vol. 9, issue 4, 721-732

Abstract: The main motivation behind this research because nowadays tourism becomes one of the major industries in Indonesia However literature on the causal relationship between the cyclical components of tourist arrivals and economic growth revealed inconclusive especially in the developing countries as Indonesia This paper aims at investigating whether foreign tourist arrivals contribute to economic growth evidence from Indonesia over the period 2004 1 2016 12 Then this research was applied the vector autoregressive VAR model Afterwards we exploited Hodrick Prescott de trending procedure to obtain cyclical components of tourist arrivals and economic growth By using the test of Granger causality we found that causality running from tourist arrivals to economic growth Furthermore the VAR model shows that tourist arrivals were pro cyclical to economic growth implied that the increase of tourist arrivals promote the economic growth so that foreign tourist arrivals could be the key to escalate Indonesia s economic growth in short term

Date: 2018
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:srs:jemt00:v:9:y:2018:i:4:p:721-732

Access Statistics for this article

Journal of Advanced Research in Management is currently edited by Ramona PIRVU

More articles in Journal of Advanced Research in Management from ASERS Publishing
Bibliographic data for series maintained by Claudiu Popirlan ( this e-mail address is bad, please contact ).