Keywords
cointegration; competitiveness; error correction model; granger causality; Puerto Rico; tourism spending
Abstract
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.
Publication Date
2010
Original Citation
Croes, R., & Rivera, M. (2010). Testing the impact of tourism on competitiveness: the case of Puerto Rico, Tourism Economics, 16(1), 217-234.
DOI
10.5367/000000010790872114
Number of Pages
217-234
Document Type
Paper
Language
English
Source Title
Tourism Economics
Volume
16
Issue
1
Copyright Status
Publisher retained
Publication Version
Publisher's version
Copyright Date
2010-03-01
College
Rosen College of Hospitality Management
Location
Rosen College of Hospitality Management
STARS Citation
Croes, Robertico and Rivera, Manuel A., "Testing the impact of tourism on competitiveness: the case of Puerto Rico" (2010). Rosen Faculty Scholarship and Creative Works. 460.
https://stars.library.ucf.edu/rosenscholar/460