IDEAS home Printed from https://ideas.repec.org/a/chi/journl/v1y2012i4p107-128.html
   My bibliography  Save this article

Does price matter? The FMOLS and DOLS estimation of industrial countries tourists outbound to four ASEAN countries

Author

Listed:
  • Komkrit Wongkhae

    (Chiang Mai University)

  • Songsak Sriboonchitta

    (Chiang Mai University)

  • Kanchana Choketaworn

    (Chiang Mai University)

  • Chukiat Chaiboonsri

    (Chiang Mai University)

Abstract

To provide the alternative idea of tourism demand research, instead of exploring tourism demand of panel group of origins to particular destination country, this paper adopts panel analysis to find long run relationship between number of tourists outbound from 8 rich countries to the panel of 4 ASEAN countries namely Malaysia, Philippines, Singapore and Thailand. Five statistic tests for panel unit root and ten types of panel cointegration test have ensured the appropriation of data to be estimated. The panel individual FMOLS test and group mean FMOLS and DOLS test have led to find the positive direction of price competitiveness and relative economic growth with number of outbound tourists. The results reveal that Singapore is mostly advantage compare to its neighbors in term of relative price and is not different from Malaysia and Thailand in term of relative economic growth. Philippines however need to accelerate its tourism promotion to enhance international tourist arrivals.

Suggested Citation

  • Komkrit Wongkhae & Songsak Sriboonchitta & Kanchana Choketaworn & Chukiat Chaiboonsri, 2012. "Does price matter? The FMOLS and DOLS estimation of industrial countries tourists outbound to four ASEAN countries," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 1(4), pages 107-128, December.
    • Handle: RePEc:chi:journl:v:1:y:2012:i:4:p:107-128
    as

    Download full text from publisher

    File URL: http://www.jyoungeconomist.com/images/stories/EEQEL_V1_N4_December_2012_pp_107_128_Wongkhae_et_al.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Peter C. B. Phillips & Bruce E. Hansen, 1990. "Statistical Inference in Instrumental Variables Regression with I(1) Processes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(1), pages 99-125.
    2. Chang-Jui Lin & Hsueh-Fang Chen & Tian-Shyug Lee, 2011. "Forecasting Tourism Demand Using Time Series, Artificial Neural Networks and Multivariate Adaptive Regression Splines:Evidence from Taiwan," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 2(2), pages 14-24, May.
    3. Coshall, John T. & Charlesworth, Richard, 2011. "A management orientated approach to combination forecasting of tourism demand," Tourism Management, Elsevier, vol. 32(4), pages 759-769.
    4. Chukiat Chaiboonsri & Jittaporn Sriboonjit & Thanes Sriwichailamphan & Prasert Chaitip & Songsak Sriboonchitta, 2010. "A Panel Cointegration Analysis: An Application To International Tourism Demand Of Thailand," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 10(3), pages 69-86.
    5. Dreger, C. & Reimers, H.E., 2005. "Health Care Expenditures in OECD Countries: A Panel Unit Root and Cointegration Analysis," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 2(2), pages 5-20.
    6. Kaddour Hadri, 1999. "Testing The Null Hypothesis Of Stationarity Against The Alternative Of A Unit Root In Panel Data With Serially Correlated Errors," Working Papers 1999_05, University of Liverpool, Department of Economics.
    7. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
    8. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    9. Chu, Fong-Lin, 2011. "A piecewise linear approach to modeling and forecasting demand for Macau tourism," Tourism Management, Elsevier, vol. 32(6), pages 1414-1420.
    10. Chang, Chia-Lin & Sriboonchitta, Songsak & Wiboonpongse, Aree, 2009. "Modelling and forecasting tourism from East Asia to Thailand under temporal and spatial aggregation," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 79(5), pages 1730-1744.
    11. Divino, Jose Angelo & McAleer, Michael, 2010. "Modelling and forecasting daily international mass tourism to Peru," Tourism Management, Elsevier, vol. 31(6), pages 846-854.
    12. repec:bla:obuest:v:61:y:1999:i:0:p:631-52 is not listed on IDEAS
    13. Schiff, Aaron & Becken, Susanne, 2011. "Demand elasticity estimates for New Zealand tourism," Tourism Management, Elsevier, vol. 32(3), pages 564-575.
    14. Eugenio-Martin, Juan L. & Campos-Soria, Juan A., 2010. "Climate in the region of origin and destination choice in outbound tourism demand," Tourism Management, Elsevier, vol. 31(6), pages 744-753.
    15. Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 33(1), pages 125-132.
    16. Christine Lim & Michael McAleer, 2000. "A seasonal analysis of Asian tourist arrivals to Australia," Applied Economics, Taylor & Francis Journals, vol. 32(4), pages 499-509.
    17. Nicolau, Juan L., 2012. "The effect of winning the 2010 FIFA World Cup on the tourism market value: The Spanish case," Omega, Elsevier, vol. 40(5), pages 503-510.
    18. Peter Pedroni, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 653-670, November.
    19. Saikkonen, Pentti, 1991. "Asymptotically Efficient Estimation of Cointegration Regressions," Econometric Theory, Cambridge University Press, vol. 7(1), pages 1-21, March.
    20. Becken, Susanne & Lennox, James, 2012. "Implications of a long-term increase in oil prices for tourism," Tourism Management, Elsevier, vol. 33(1), pages 133-142.
    21. G. S. Maddala & Shaowen Wu, 1999. "A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 631-652, November.
    22. repec:bla:obuest:v:61:y:1999:i:0:p:653-70 is not listed on IDEAS
    23. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Garba, Ifeoluwa & Bellingham, Richard, 2021. "Energy poverty: Estimating the impact of solid cooking fuels on GDP per capita in developing countries - Case of sub-Saharan Africa," Energy, Elsevier, vol. 221(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. El-Shazly, Alaa, 2013. "Electricity demand analysis and forecasting: A panel cointegration approach," Energy Economics, Elsevier, vol. 40(C), pages 251-258.
    2. Juan Carlos Aquino & N. R. Ramírez-Rondán, 2020. "Estimating factor shares from nonstationary panel data," Empirical Economics, Springer, vol. 58(5), pages 2353-2380, May.
    3. Chukiat Chaiboonsri & Prasert Chaitip & N. Rangaswamy, 2008. "A Panel Unit Root and Panel Cointegration Test of the Modeling International Tourism Demand in India," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 8(1), pages 95-124.
    4. Chukiat Chaiboonsri & Jittaporn Sriboonjit & Thanes Sriwichailamphan & Prasert Chaitip & Songsak Sriboonchitta, 2010. "A Panel Cointegration Analysis: An Application To International Tourism Demand Of Thailand," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 10(3), pages 69-86.
    5. Tarik Dogru & Umit Bulut & Ercan Sirakaya-Turk, 2021. "Modeling tourism demand: Theoretical and empirical considerations for future research," Tourism Economics, , vol. 27(4), pages 874-889, June.
    6. Pedro M. G. Martins, 2010. "Aid Absorption and Spending in Africa: A Panel Cointegration Approach," Working Paper Series 1010, Department of Economics, University of Sussex Business School.
    7. Kahia, Montassar & Ben Aïssa, Mohamed Safouane & Charfeddine, Lanouar, 2016. "Impact of renewable and non-renewable energy consumption on economic growth: New evidence from the MENA Net Oil Exporting Countries (NOECs)," Energy, Elsevier, vol. 116(P1), pages 102-115.
    8. Sofien Tiba & Musavir Ul Habib, 2024. "Examining the Causal Linkages Between Nuclear Energy, Environment, and Economic Growth: An Application from the SAARC Economies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 9699-9722, June.
    9. Ogali, Oscar I.O. & Okoro, Emeka E. & Olafuyi, Saburi G., 2023. "Assessing consensus on nexus between natural gas consumption and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 187(C).
    10. Badi H. Baltagi & Chihwa Kao, 2000. "Nonstationary Panels, Cointegration in Panels and Dynamic Panels: A Survey," Center for Policy Research Working Papers 16, Center for Policy Research, Maxwell School, Syracuse University.
    11. Chebli Mongi & Kais Saidi, 2024. "The Impact of Corruption, Government Effectiveness, FDI, and GFC on Economic Growth: New Evidence from Global Panel of 48 Middle-Income Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 10696-10721, September.
    12. Carlos Alberto Barreto Nieto & Jacobo Campo Robledo, 2012. "Relación a largo plazo entre consumo de energía y PIB en América Latina: Una evaluación empírica con datos panel," Revista Ecos de Economía, Universidad EAFIT, October.
    13. Aysel Amir & Korhan Gökmenoğlu, 2023. "Analyzing the Drivers of the Shadow Economy for the Case of the CESEE Region," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 71(2), pages 155-181, February.
    14. Breitung, Jörg & Pesaran, Mohammad Hashem, 2005. "Unit roots and cointegration in panels," Discussion Paper Series 1: Economic Studies 2005,42, Deutsche Bundesbank.
    15. Robert Kelm, 2022. "Determinants of the VAT Gap in EU Member States from 2000 to 2016," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 14(4), pages 225-262, December.
    16. In Choi, 2012. "Panel Cointegration," Working Papers 1208, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).
    17. Skare, Marinko & Ozturk, Ilhan & Porada-Rochoń, Małgorzata & Stjepanovic, Sasa, 2024. "Energy as the new frontier: Dynamic panel data analysis revealing energy's transformative role in economic growth and technological progress," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    18. Yanan Wang & Wei Chen & Minjuan Zhao & Bowen Wang, 2019. "Analysis of the influencing factors on CO2 emissions at different urbanization levels: regional difference in China based on panel estimation," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 96(2), pages 627-645, March.
    19. Natalya Ketenci, N., 2010. "The Feldstein Horioka Puzzle by groups of OECD members: the panel approach," MPRA Paper 25848, University Library of Munich, Germany.
    20. Luisanna Onnis & Patrizio Tirelli, 2010. "Challenging the popular wisdom. New estimates of the unobserved economy," Working Papers 184, University of Milano-Bicocca, Department of Economics, revised Apr 2010.

    More about this item

    Keywords

    Dynamic panel data; Tourism demand; FMOLS and DOLS Panel group mean estimation;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:chi:journl:v:1:y:2012:i:4:p:107-128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Komsan Suriya (email available below). General contact details of provider: https://edirc.repec.org/data/fecmuth.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.