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    Evaluating methodological issues in the tourism literature: UK outgoing tourism and trade links

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    Jackson_Economic_Issues.pdf (1.010Mb)
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    Publication date
    2015-03
    Author
    Jackson, Karen
    Zang, Wenyu
    Keyword
    Tourism; Trade; Causality
    Peer-Reviewed
    Yes
    
    Metadata
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    Abstract
    This paper evaluates the importance of trade in goods when modelling demand for tourism. It is argued that the limited literature testing causality between trade in goods and tourism does not consider the appropriate variables. This study utilises bilateral data for 16 UK tourist destinations in order to test Granger causality between trade in goods and tourism expenditure. UK imports, exports and total trade are tested separately, whilst controlling for real GDP and real bilateral exchange rates. The novelty of this paper is the variable specification, as well as testing the causal relationship for the case of UK outgoing tourists. Our findings suggest a causal relationship between the tourism expenditure of UK residents and trade in goods. These results support the inclusion of a trade in goods variable when estimating tourism demand, as well as adopting appropriate methodologies to account for this causal relationship. Furthermore, there is strong evidence that the trade-tourism link is important for both the UK and host countries.
    URI
    http://hdl.handle.net/10454/10202
    Version
    Accepted Manuscript
    Citation
    Jackson K and Zang W (2015) Evaluating methodological issues in the tourism literature: UK outgoing tourism and trade links. Economic Issues. 20(1): 1-42.
    Link to publisher’s version
    http://www.economicissues.org.uk/Vol20.html#a1
    Type
    Article
    Collections
    Management and Law Publications

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