Munich Personal RePEc ArchiveDynamic inter-relationship between trade, economic growth and tourism in MalaysiaTamatSarmidiauthorNorlida HSallehauthorThis study aims to test a hypothesis that postulate a positive inter-relationship between international flows of tourist, trade and economic growth. Although tourism is one of the major components in the trade of services, and it has been certified by large number of literatures on the strong correlation between tourism industry and economic development, yet not much is known on the dynamic inter-relationship between these three variables. Closing-up this gaping hole, this study employs the cointegration tests under autoregressive distributed lag (ARDL) structure to investigate a dynamic inter-relationship between economic development, total trade (import and export) and number of tourist arrival for Malaysia and her major tourism partners ((ASEAN countries) . The estimated result based on the long run time series behavior for number of tourist arrival, volume of total trade and economic development’s indicator shows that these three variables are moved in tandem. Interestingly, in the analysis of short run behavior, we find that number of tourist arrival has significantly Granger caused total trade flows at least for some countries. At the same time, in the short-run, we find that both growth in total trade (export and import) and international tourists’ arrival to Malaysia have uni-directionally Granger caused real income growth and there is statistical evidence for international trade to lead tourist arrival.F00 - GeneralF41 - Open Economy MacroeconomicsA10 - General2010-03-01MPRA Paper

Copyright Agreement

1. The author hereby affirms that he or she accepts the editorial guidelines given at https://mpra.ub.uni-muenchen.de/information.html.

2. The author hereby grants to the University Library of the Ludwig-Maximilians-Universität (LMU) a non-exclusive licence to make the electronic version of the uploaded work publicly accessible through the "Munich Personal RePEc Archive" (MPRA) repository. This licence includes abstracts and metadata and is valid for the duration of the statutory protection period, without territorial limitation. The licence furthermore includes the right to replicate the work as required, especially for the purposes of including the work and/or abstracts and metadata in electronic databases and of employing digital or other transmission technology to make this data available to large numbers of users, using either services invoked by user request or services initiated by the repository, and encompassing all forms of transmission (cable, wireless, satellite etc.) and protocol (TCP/IP, http, ftp etc.).

3. This contract entitles the University Library to transfer the licence granted herein either partially or wholly to a third party and to grant non-exclusive rights to other repositories without requiring the authors explicit permission.

4. The author hereby affirms that no third-party rights are infringed by the electronic publication of the work and undertakes to indemnify the University Library of the LMU against any third-party claims relating to the infringement of copyright legislation or exclusive usage rights which may result from the publication of the work through the University Library repository. The author hereby undertakes to reimburse any charges resulting from a rights infringement caused by him or her.

5. In the event that the author is not the sole author of the work in question, he/she hereby declares that he/she has been empowered by his/her co-authors to grant the above-mentioned usage licence.

6. In the event that the person who is uploading the work in question is not the author of this work, he/she hereby declares that he/she has been empowered by the author(s) to grant the above-mentioned usage licence.

7. The author continues to retain the usage rights to his or her work and may also bestow these rights elsewhere provided this does not curtail the rights granted to the University Library of the LMU in this declaration.

Clicking on the deposit button below indicates your agreement to these terms.

As the submission cannot be modified once it is accepted, please submit only if you are absolutely sure that no further changes are needed. Otherwise select the "Save for Later" button and review your submission. By doing so, nothing you have entered will be lost and you can resume your submission any time in the future.