Abstract
ABSTRACT Fiji’s tourism industry has evolved significantly over the past 3 decades with past and present governments striving to support the development of the sector. In this study, we test the association between tourism measured by international visitor arrivals and Fiji’s real exchange rate using annual data over the period 1980–2018. Structural breaks are identified with the Gregory-Hansen test, and cointegration is confirmed with the Bayer-Hanck test. Nonlinear estimation is conducted with the nonlinear ARDL model. The results indicate that a 1% increase in tourism appreciates the real exchange rate by 0.42% whereas a 1% decrease however would depreciate the real exchange rate by about 0.32%. The findings raise concerns parallel to the Dutch Disease models and has implications for the measurement of tourism prices in tourism demand models.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
More From: Journal of Policy Research in Tourism, Leisure and Events
Disclaimer: 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.