Abstract
This paper is to set up the error correction model in order to estimate the price elasticity, income elasticity and exchange rate elasticity for the long-run demand function in the tourism service industries including retail·food ·lodging and transport·communication. The price elasticity of demand are estimated to be –2.254 and –1.435 respectively in retail·food·lodging and transport·communication. The income elasticity of demand are estimated to be 0.907 and 0.606 respectively in both industries respectively. The exchange rate elasticity were also estimated to be 0.495 in retail·food·lodging and 0.534 in transport·communication. Thus the empirical result suggests that Producer Price Index, real GDP, and exchange rate have been major determinants for the long-run demand function in the tourism service industries during the period of 1975:1-2016:4. All data come from Economic Statistical System(ECOS) of the Bank of Korea and Korean Statistical Information Service (KSIS) of the bureau of Statistics.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
