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  • articleNo Access

    MODELING TOURISM–ENVIRONMENT RELATIONSHIP IN AUSTRALIA: DOES ASYMMETRY MATTER?

    Prior empirical studies have employed various econometric estimation techniques to study the environmental effect of tourism demand. Prominently, these econometric modeling techniques implicitly assume that the environmental effect of tourism is symmetrical, which could sometimes be problematic. This study, therefore, utilized two econometric estimation techniques, namely, the Pesaran et al. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326) symmetric autoregressive distributed lag (ARDL) and Shin et al. (2014). Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework. In Festschrift in Honor of Peter Schmidt, pp. 281–314. New York: Springer) nonlinear ARDL (NARDL) estimation technique to disentangle the effect of tourism demand on carbon emissions in Australia. The results from the symmetric ARDL model reveal that tourism demand significantly increases carbon emissions in the long run, indicating that a 1% increase in tourism demand contributes to a 0.155% increase in carbon emissions in the long run. Contrarily, the NARDL model shows that a positive shock (an increase) in tourism demand reduces carbon emissions while a negative shock (a decrease) in tourism demand increases carbon emissions in the long run. From the NARDL estimate, a 1% increase in tourism demand is associated with a 0.220% decline in carbon emissions, while a 1% decrease in tourism demand increases carbon emissions by 0.250%. Therefore, I argue that carbon emissions depend not only on the size of tourism demand but also on the pattern — thus the increase and decline — of tourism demand. The implications of these results for policy are discussed.

  • articleNo Access

    CAUSALITY BETWEEN TOURISM AND ECONOMIC DEVELOPMENT: THE QUANTILE-ON-QUANTILE ANALYSIS OF EIGHT CENTRAL PROVINCES IN CHINA

    This paper aims to examine the relationship between tourism and economic growth in China’s eight central provinces through the annual data from 1995 to 2019 using quantile-on-quantile approaches. Results show a positive relationship between tourism and economic growth for China’s eight central provinces considered with substantial variations across provinces and quantiles within each province. The weakest relationship was noted for Shanxi, possibly because of the limited importance of the tourism sector relative to other major economic activities in this province. For Heilongjiang, Hubei, Hunan and Jilin, the most pronounced relationship between tourism activities and economic growth was observed only during the period of a deep economic upturn. The main reason for the economic downturn is that economic development during the periods of severe acute respiratory syndrome, avian influenza, Middle East respiratory syndrome coronavirus and coronavirus disease 2019 pandemics impacted tourist arrivals. Important provincial-specific policy implications may be drawn from these findings.

  • articleNo Access

    PEACE AND TOURISM: A NEXUS? EVIDENCE FROM DEVELOPED AND DEVELOPING COUNTRIES

    The paper empirically examines the nexus between tourism and peace. To do so, it uses in the analysis the recently developed composite Global Peace Index. The sample employed consists of 113 countries and covers the period 2008–2014. The methodology adopted includes PVAR Granger causality tests and impulse response functions. The sample was split into two income groups to allow for the possibility that the nexus differs between developed and developing countries. Findings reported herein indicate a temporary, very short-term adverse effect on tourism as a result of worsening levels of peacefulness only for the former group of countries. A peace promoting effect by tourism is established in the case of the latter group.