Analysis of tourist flow from the US to Taiwan

Yen Hsun Chen, Hsin Hong Kang

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

It is important for Taiwanese policy makers to understand how economic factors affect US tourists' decision to travel to Taiwan. For the long-run analysis, Johansen's cointegration test reveals that three cointegration vectors exist among the model variables, indicating a long-run relationship. To conduct a short-run analysis, this paper employs vector auto regression (VAR) to estimate the responses of US tourists in Taiwan to the shocks of changes to personal disposable income, cost of living, and substitute price. The short-run equilibrium adjustment processes are discussed in terms of generalized impulse response. The results show an immediate and signifi cant response of changes in tourist arrivals to their own impacts, changes in the cost of living, and changes in the substitute price. In addition, the price, income, and cross-elasticity of tourism demand are all positive at the beginning of the responses, implying that the tourism products can be attributed to normal and substitute goods.

Original languageEnglish
Pages (from-to)369-384
Number of pages16
JournalActa Oeconomica
Volume65
DOIs
Publication statusPublished - 2015 Dec

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Taiwan
Tourists
Substitute
Short-run
Cost of living
Adjustment process
Cointegration
Generalized impulse responses
Tourism demand
Elasticity
Politicians
Tourism product
Long-run relationship
Personal income
Cointegration test
Income
Economic factors
Vector autoregression

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cite this

Chen, Yen Hsun ; Kang, Hsin Hong. / Analysis of tourist flow from the US to Taiwan. In: Acta Oeconomica. 2015 ; Vol. 65. pp. 369-384.
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Analysis of tourist flow from the US to Taiwan. / Chen, Yen Hsun; Kang, Hsin Hong.

In: Acta Oeconomica, Vol. 65, 12.2015, p. 369-384.

Research output: Contribution to journalArticle

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