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 language | English |
|---|---|
| Pages (from-to) | 369-384 |
| Number of pages | 16 |
| Journal | Acta Oeconomica |
| Volume | 65 |
| DOIs | |
| Publication status | Published - 2015 Dec |
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All Science Journal Classification (ASJC) codes
- Economics and Econometrics
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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 journal › Article
TY - JOUR
T1 - Analysis of tourist flow from the US to Taiwan
AU - Chen, Yen Hsun
AU - Kang, Hsin Hong
PY - 2015/12
Y1 - 2015/12
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=84983121073&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84983121073&partnerID=8YFLogxK
U2 - 10.1556/032.65.2015.S2.27
DO - 10.1556/032.65.2015.S2.27
M3 - Article
AN - SCOPUS:84983121073
VL - 65
SP - 369
EP - 384
JO - Acta Oeconomica
JF - Acta Oeconomica
SN - 0001-6373
ER -