A Long-run Equilibrium Demand Function: Tourism in Mexico

Juan Brida, Wiston Adriàn Risso and Edgar Sánchez Carrera ()

MPRA Paper from University Library of Munich, Germany

Abstract: Tourism demand in Mexico is around 80 percent represented by USA visitors. The goal of this paper is to explain the long-term effects of Tourism Demand in Mexico with respect to US visitors. To reach our goal the methodology of this paper follows the Johansen cointegration analysis and using annual time-series data, a single equation is estimated. With the empirical analyze, we study the tourism demand elasticities considering public investment, relative prices of tourist products, and US income per capita. Further analysis shows only one direction of a strongly positive Granger-causality going from number of tourists to the relative prices. We show that US income positively affects the Mexican tourism demand.

Keywords: Tourism demand modelling; Public investment on tourism; Economics of Tourism; Johansen Cointegration test (search for similar items in EconPapers)
JEL-codes: L83 M1 O1 (search for similar items in EconPapers)
Date: 2007-09-10, Revised 2008-01-25
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in TOURISMOS: An International Multidisciplinary Refereed Journal of Tourism 1.3(2008): pp. 66-82

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/25375/1/MPRA_paper_25375.pdf original version (application/pdf)

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:pra:mprapa:25375

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().