Testing the empirical link between tourism and competitiveness: evidence from Puerto Rico
Abbreviated Journal Title
competitiveness; tourism spending; error correction model; cointegration; Granger causality; Puerto Rico; TIME-SERIES; UNIT-ROOT; COINTEGRATION VECTORS; AUTOREGRESSIVE MODELS; ERROR-CORRECTION; CAUSALITY; DESTINATION; REPRESENTATION; ECONOMICS; Economics; Hospitality, Leisure, Sport & Tourism
This Study examines the empirical relationship between tourism and the competitiveness of a destination. It uses the cointegration and error correction model (ECM) in a bivariate context as a precondition to apply the Granger causality test. This procedure was carried Out in the case Of Puerto Rico's tourism Industry during 1960-2004. The study found cointegration in the intertemporal rather than the contemporaneous effects, as well as a one-directional causality running from changes In tourism spending to changes in competitiveness. This result highlights the long-run equilibrium spending behaviour of tourists as a major concern of destination managers.
"Testing the empirical link between tourism and competitiveness: evidence from Puerto Rico" (2010). Faculty Bibliography 2010s. 70.