Details

Autor(en) / Beteiligte

• Nishkar Kumar, Nikeel
• Patel, Arvind

Titel

A test of the tourism Dutch disease hypothesis in developing countries

Ist Teil von

• Journal of air transport management, 2024-04, Vol.116, p.102577, Article 102577

Ort / Verlag

Elsevier Ltd

Erscheinungsjahr

2024

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• In this study, we examine whether tourism can appreciate real exchange rates in developing countries. We use Fiji as a case study with annual data from 1980 to 2019. We apply the recently developed Fourier ARDL model which automatically corrects for the effects of structural breaks. The results indicate that tourism entails real exchange rate appreciation pressure. This effect is present with positive tourism shocks in expansionary periods. Tourism exerts a marginally stronger downward pressure on real exchange rates with negative tourism shocks during recessionary periods. Negative tourism shocks in expansions and positive tourism shocks in recessions do not influence real exchange rates. The implication is that whether tourism leads to an appreciation of real exchange rates depends on the relevant phase of the business cycle. •Tourism demand and air travel.•Dutch Disease.•Asymmetric effects.