IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v12y2024i4p88-d1374298.html
   My bibliography  Save this article

Tourism and Economic Misery: Theory and Empirical Evidence from Mexico

Author

Listed:
  • Fernando Sánchez López

    (Instituto de Investigaciones Económicas, Universidad Nacional Autónoma de México, Mexico City 04510, Mexico)

Abstract

The misery index (MI) was devised to summarize the most evident costs for a society, attempting to objectively measure the loss in general welfare. It has been remarked in the literature that economic growth exerts a negative impact on the MI; however, analyses of this relationship in the tourism field have been neglected. This study assessed the effectiveness of the tourism sector at improving welfare conditions by measuring the impact of tourism GDP on the misery index and providing a theoretical framework for the relationship between tourism and the MI. A quantitative analysis was conducted using quarterly time series data for the period 2005Q1–2021Q2. Firstly, the existence of a long-term relationship was tested by using the Toda–Yamamoto procedure, and secondly, by applying linear and nonlinear ARDL models. The main results show that tourism can help to reduce the loss of welfare mirrored by the MI. These findings have policy implications, as they provide evidence that expanding the tourism sector counters the MI, and, consequently, the economic malaises derived from it.

Suggested Citation

  • Fernando Sánchez López, 2024. "Tourism and Economic Misery: Theory and Empirical Evidence from Mexico," Economies, MDPI, vol. 12(4), pages 1-20, April.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:4:p:88-:d:1374298
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/12/4/88/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/12/4/88/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. K. Burggraeve & G. de Walque & H. Zimmer, 2015. "The relationship between economic growth and employment," Economic Review, National Bank of Belgium, issue i, pages 32-52, June.
    2. Ivan K. Cohen & Fabrizio Ferretti & Bryan McIntosh, 2014. "Decomposing the misery index: A dynamic approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 2(1), pages 1-8, December.
    3. Toda, Hiro Y. & Yamamoto, Taku, 1995. "Statistical inference in vector autoregressions with possibly integrated processes," Journal of Econometrics, Elsevier, vol. 66(1-2), pages 225-250.
    4. Michael C. & Pao-Lin Tien, 2000. "Economic Discomfort and Consumer Sentiment," Eastern Economic Journal, Eastern Economic Association, vol. 26(1), pages 1-8, Winter.
    5. Ewa, Lechman, 2009. "Okun`s and Barro`s Misery Index as an alternative poverty assessment tool. Recent estimations for European countries," MPRA Paper 37493, University Library of Munich, Germany.
    6. Grabia Tomasz, 2011. "The Okun Misery Index in the European Union Countries from 2000 to 2009," Comparative Economic Research, Sciendo, vol. 14(4), pages 97-115, January.
    7. Jinli Wang & Wanqing Lv, 2023. "Tourism poverty alleviation hotspots in China: Topic evolution and sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1902-1920, June.
    8. Cristi Frent, 2016. "An overview on the negative impacts of tourism," Revista de turism - studii si cercetari in turism / Journal of tourism - studies and research in tourism, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 22(22), pages 1-4, December.
    9. Emeka Nkoro & Aham Kelvin Uko, 2016. "Autoregressive Distributed Lag (ARDL) cointegration technique: application and interpretation," Journal of Statistical and Econometric Methods, SCIENPRESS Ltd, vol. 5(4), pages 1-3.
    10. Tangarife, Carmen Lucía, 2013. "La economía va bien pero el empleo va mal: factores que han explicado la demanda de trabajo en la industria colombiana durante los anos 2002-2009," Perfil de Coyuntura Económica, Universidad de Antioquia, CIE, issue 21, pages 39-61, April.
    11. Liliana Winkelmann & Rainer Winkelmann, 1998. "Why Are the Unemployed So Unhappy?Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 65(257), pages 1-15, February.
    Full references (including those not matched with items on IDEAS)

    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. Fernando Sánchez López, 2022. "Measuring the Effect of the Misery Index on International Tourist Departures: Empirical Evidence from Mexico," Economies, MDPI, vol. 10(4), pages 1-16, April.
    2. Josefa Ramoni-Perazzi & Giampaolo Orlandoni-Merli, 2013. "El índice de miseria corregido por informalidad: una aplicación al caso de Venezuela," Revista Ecos de Economía, Universidad EAFIT, December.
    3. K. Moses Tule & Eunice Ngozi Egbuna & Eme Dada & Godday Uwawunkonye Ebuh, 2017. "A dynamic fragmentation of the misery index in Nigeria," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1336295-133, January.
    4. Osman AKGÜL & Abdullah Miraç BÜKEY, 2020. "Türkiye’de Enflasyon ile Asgari Ücretler Arasındaki İlişki ve Ücret-Fiyat Sarmalı," Journal of Social Policy Conferences, Istanbul University, Faculty of Economics, vol. 0(78), pages 257-282, June.
    5. Thomas Habanabakize, 2021. "Determining the Household Consumption Expenditure’s Resilience towards Petrol Price, Disposable Income and Exchange Rate Volatilities," Economies, MDPI, vol. 9(2), pages 1-15, June.
    6. Ali, Adnan & Ramakrishnan, Suresh & Faisal,, 2022. "Financial development and natural resources. Is there a stock market resource curse?," Resources Policy, Elsevier, vol. 75(C).
    7. Ali, Adnan & Ramakrishnan, Suresh & Faisal, Faisal & Bazhair, Ayman Hassan & Sulimany, Hamid Ghazi H & Rahman, Sami Ur, 2024. "Does escaping the natural resource curse complement evading the financial resource curse too? Empirical evidence from Indonesia," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 539-555.
    8. Md. Saiful Islam & Anis ur Rehman & Imran Khan, 2024. "Assessing the Impact of Environmental Technology on CO 2 Emissions in Saudi Arabia: A Quantile-Based NARDL Approach," Mathematics, MDPI, vol. 12(15), pages 1-21, July.
    9. Emmanuel Mensah & Joseph Kwadwo Tuffour & Mamdouh Abdulaziz Saleh Al-Faryan, 2023. "Does macroeconomic misery index matter in the micro firm-level earnings Management – performance nexus? Evidence from dynamic Panel threshold regression," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(2), pages 2289321-228, October.
    10. Md. Saiful Islam, 2023. "Does an export‐led growth proposition exist for Bangladesh's ready‐made garments sector? A nonlinear ARDL approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(5), pages 939-955, June.
    11. Jesser Roberto Paladines Amaiquema, 2017. "Is Ecuador Real Gross Domestic Product per Capita and Other Macroeconomic Variables Cointegrated? An Autoregressive Distribution Lag Bound Test Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 7(3), pages 9-13.
    12. Alper YILMAZ, 2024. "Bilateral J-Curve Between Türkiye and Its Major Non-EU Trading Partners: Evidence from Both Linear and Non-Linear Approach," Sosyoekonomi Journal, Sosyoekonomi Society, issue 32(60).
    13. Oliver Picek, 2017. "The "Magic Square" of Economic Policy measured by a Macroeconomic Performance Index," Working Papers 1702, New School for Social Research, Department of Economics.
    14. Alexis Vessat, 2016. "Energy Consumption-Economic Growth nexus in Sub-Saharan Countries: what can we learn from a meta-analysis? (1996-2016)," Post-Print hal-01944514, HAL.
    15. Ibitoye J. Oyebanji & Ewert P. J. Kleynhans, 2021. "Renewable energy, international trade, carbon dioxide emissions, and economic growth in Nigeria," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2021(2), pages 173-195.
    16. Clovis Wendji Miamo & Elvis Dze Achuo, 2021. "Crude Oil Price and Real GDP Growth: An Application of ARDL Bounds Cointegration and Toda-Yamamoto Causality Tests," Economics Bulletin, AccessEcon, vol. 41(3), pages 1615-1626.
    17. Mirela Mitrasević & Miloš Pjanić & Milijana Novovic Burić, 2022. "Relationship Between Insurance Market and Economic Growth in the European Union," Politická ekonomie, Prague University of Economics and Business, vol. 2022(4), pages 395-420.
    18. Sakiru Adebola Solarin & Luis A. Gil-Alana & Carmen Lafuente, 2020. "Persistence of the Misery Index in African Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(3), pages 825-841, February.
    19. Manuel Carlos Nogueira & Mara Madaleno, 2021. "Is the Aurora Borealis an Inspiration to the Performance of Nordic Economic Sustainability?," Sustainability, MDPI, vol. 13(17), pages 1-22, September.
    20. Roberto Golinelli & Giuseppe Parigi, 2003. "What is this thing called confidence? A comparative analysis of consumer confidence indices in eight major countries," Temi di discussione (Economic working papers) 484, Bank of Italy, Economic Research and International Relations Area.

    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:gam:jecomi:v:12:y:2024:i:4:p:88-:d:1374298. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.