The exposure of the US tourism subsector stocks to global volatility and uncertainty factors

Dlawar Mahdi Hadi, Muhammad Abubakr Naeem and Sitara Karim

Current Issues in Tourism, 2023, vol. 26, issue 4, 603-616

Abstract: In the face of uncertain circumstances and volatilities across tourism stocks, the current study attempts to investigate the connectedness of US tourism subsectors using time-varying vector autoregressions (TVP-VAR) technique for the period spanning 1 August 2008–31 August 2021. Moreover, we examined the influence of various financial and economic indicators to observe their impact on the connectedness of US tourism subsectors. Further, we employed Diebold and Yilmaz ([2012]. Better to give than to receive: Predictive directional measurement of volatility spillovers. International Journal of Forecasting, 28(1), 57–66) connectedness approach to justify the robustness of our results. We find that hotels, transportation, and recreational are net transmitters of spillovers to the remaining US subsectors. We reported multiple time-varying attributes where the connectedness of US tourism subsectors was remarkably higher. In addition, the regression results reveal a positive and significant impact of financial and economic uncertainties on the connectedness. Finally, our findings were robust to the methodology employed, which substantially justified our estimator. We proposed numerous useful implications for policymakers, US government, tourism industry, investors, market players, and portfolio managers to benefit from the findings obtained.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13683500.2022.2031916 (text/html)
Access to full text is restricted to subscribers.

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:taf:rcitxx:v:26:y:2023:i:4:p:603-616

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rcit20

DOI: 10.1080/13683500.2022.2031916

Access Statistics for this article

Current Issues in Tourism is currently edited by Jennifer Tunstall

More articles in Current Issues in Tourism from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().