Examining the stability of the long-run relationship between tourism and economic growth for Puerto Rico

Husein, Jamal; Kara, S. Murat

Examining the stability of the long-run relationship between tourism and economic growth for Puerto Rico

dc.contributor.author	Husein, Jamal
dc.contributor.author	Kara, S. Murat
dc.date.accessioned	2024-08-01T21:01:58Z
dc.date.available	2024-08-01T21:01:58Z
dc.date.issued	2021-01-28
dc.description.abstract	This study empirically examines the stability of the long-run relationship between tourism and economic growth for Puerto Rico using annual data for 1960–2016. Robust results across several model specifications support the existence of a long-run equilibrium relationship between real GDP, real tourism receipts, and real exchange rate. Contrary to many previous studies that either explicitly or implicitly assume the stability of the cointegrated vector, the authors apply formal stability tests developed by Hansen and Johansen to investigate the long-run parameter constancy issue. Tests for long-run parameter stability reveal that the hypothesis of stable long-run parameters could not be rejected. The results indicate that tourism is a stable source of economic growth for Puerto Rico and Granger causality tests based on the error-correction model indicate a unidirectional causality from tourism receipts to real GDP.
dc.format.mimetype	application/pdf
dc.identifier.citation	Husein, J. & Kara, M. (2021). Examining the stability of the long-run relationship between tourism and economic growth for Puerto Rico. Tourism Analysis, 26(1). https://doi.org/10.3727/108354220X15758301241927
dc.identifier.issn	1943-3999
dc.identifier.uri	https://doi.org/10.3727/108354220X15758301241927
dc.identifier.uri	https://hdl.handle.net/2346.1/41084
dc.language.iso	en_US
dc.publisher	Cognizant Communication Corporation
dc.title	Examining the stability of the long-run relationship between tourism and economic growth for Puerto Rico
dc.type	Article
dc.type.material	Text