Did Rabuka's Military coups have a permanent effect or a transitory effect on tourist expenditure in Fiji: evidence from Vogelsang's structural break test

Abstract

The central aim of this paper is to investigate whether the military coups instigated by Major General Sitiveni Rabuka in 1987 had a permanent effect or a transitory effect on tourist expenditures in Fiji. To accomplish this aim we use the Vogelsang (Econ. Theory 13 (1997) 818) test for one break in linear trending data. The Vogelsang test reveals 1988 as the year of the break and based on a suite of test statistics recommended by Vogelsang we reject the unit root null leading to the conclusion that Rabuka's coups had a transitory effect on tourist expenditure in Fiji.