Title

Testing the empirical link between tourism and competitiveness: evidence from Puerto Rico

Authors

Authors

R. Croes;M. A. Rivera

Comments

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Abbreviated Journal Title

Tour. Econ.

Keywords

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

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.

Journal Title

Tourism Economics

Volume

16

Issue/Number

1

Publication Date

1-1-2010

Document Type

Article

Language

English

First Page

217

Last Page

234

WOS Identifier

WOS:000275608400014

ISSN

1354-8166

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