The Relationship Between Tourist Arrivals, Trade And The Economic Growth In Asean-5

Liew, Chia Hung. (2014) The Relationship Between Tourist Arrivals, Trade And The Economic Growth In Asean-5. [Final Year Project Report] (Unpublished)

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Abstract

The purpose of this study is to investigate the relationship between tourist arrivals, trade and the economic growth in ASEAN-5 that include Indonesia, Malaysia, the Philippines, Singapore, and Thailand over the period of 1980 to 2012. The tests adopted in this study are including stationary test, Johansen and Juselius Co-integration test, and VECM Granger causality test. The empirical results indicate that there exists long run relationship between tourist arrivals, trade, and the economic growth in each of the ASEAN-5 countries. Furthermore, this study had also found that there exist causality relationships among the selected variables in both short run and long run in ASEAN-5. The findings are important to policy makers to implement the appropriate policies to attract more tourist arrivals and increase the trade surplus in order to improve the GDP growth rate and achieve the ASEAN vision 2020.

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