IDEAS home Printed from https://ideas.repec.org/a/taf/rcitxx/v24y2021i11p1613-1630.html
   My bibliography  Save this article

Can financial technology development change the causality between tourism and economic growth?

Author

Listed:
  • Po-Chin Wu
  • Hui-Yu Liu
  • Shiao-Yen Liu
  • Juei-Ming Hsiao

Abstract

This paper constructs a panel smooth transition vector autoregressive model with a financial technology index (FTI) as a transition variable to explore the causality between inbound tourism and economic growth in 22 OECD countries. The model resolves the estimation problems of nonlinearity, heterogeneity, and endogeneity. The empirical results support that the causality is nonlinear, bidirectional, and time- and country-varying, depending on each country’s FTI in each period. Under most FTIs, the current inbound tourism growth will crowd out the economic growth in the next period. When the FTI is higher than the threshold (81.27), the current economic growth will harm inbound tourism growth in the next period. For OECD countries with an FTI below the threshold (81.27), tourism companies should actively expand their investment to share the tourism dividend driven from the economic growth in the previous period. For OECD countries with an FTI above the threshold, the governments should adopt appropriate policies to reduce the impact of economic growth on the tourism industry, and tourism companies should increase tourism investment during the periods of economic downturn.

Suggested Citation

  • Po-Chin Wu & Hui-Yu Liu & Shiao-Yen Liu & Juei-Ming Hsiao, 2021. "Can financial technology development change the causality between tourism and economic growth?," Current Issues in Tourism, Taylor & Francis Journals, vol. 24(11), pages 1613-1630, June.
    • Handle: RePEc:taf:rcitxx:v:24:y:2021:i:11:p:1613-1630
    DOI: 10.1080/13683500.2020.1828307
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13683500.2020.1828307
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13683500.2020.1828307?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Amin, Sakib Bin & Taghizadeh-Hesary, Farhad, 2023. "Tourism, sustainability, and the economy in Bangladesh: The innovation connection amidst Covid-19," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 153-167.
    2. Arshian Sharif & Najia Saqib & Kangyin Dong & Syed Abdul Rehman Khan, 2022. "Nexus between green technology innovation, green financing, and CO2 emissions in the G7 countries: The moderating role of social globalisation," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1934-1946, December.
    3. Jianxu Liu & Vicente Ramos & Bing Yang & Mengjiao Wang & Songsak Sriboonchitta, 2024. "Analysing the dynamic co-movement between tourism and expected economic growth considering extreme events," Tourism Economics, , vol. 30(1), pages 3-26, February.

    More about this item

    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:taf:rcitxx:v:24:y:2021:i:11:p:1613-1630. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rcit .

    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.