Tourism openness, trade openness, and currency‐purchasing power in Brazil: A causality analysis

Tourism openness, trade openness, and currency‐purchasing power in Brazil: A causality analysis

This paper examines the causality between tourism openness (TOOP), trade openness (TROP), and currency‐purchasing power (BRPP) in Brazil and measures the future impact of innovations. Johansen cointegration tests and vector error correction estimates support the hypothesis that there is short‐run an...

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Veröffentlicht in:The international journal of tourism research 2019-03, Vol.21 (2), p.197-205
Hauptverfasser: Fernandes, Elton, Pacheco, Ricardo Rodrigues, Fernandes, Vicente Aprigliano
Format: Artikel
Sprache:eng
Schlagworte:
Brazil
Causality
cointegration
currency‐purchasing power
Economic models
Granger causality
Purchasing power
Tourism
tourism openness
trade openness
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Zusammenfassung:This paper examines the causality between tourism openness (TOOP), trade openness (TROP), and currency‐purchasing power (BRPP) in Brazil and measures the future impact of innovations. Johansen cointegration tests and vector error correction estimates support the hypothesis that there is short‐run and long‐run, one‐way Granger causality from TROP and BRPP to TOOP. Variance decomposition analysis shows a peak percent TOOP variance of 51% due to BRPP and TROP. BRPP shows as the main precedent variable to be observed for tourism planning. The analysis indicates that policymakers must consider BRPP and TROP in setting objectives for Brazilian tourism.
ISSN:1099-2340
1522-1970
DOI:10.1002/jtr.2254