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A tale of two shocks: What do we learn from the impacts of economic policy uncertainties on tourism?

Author

Listed:
  • Faruk Balli

    (Massey University)

  • Syed Jawad Hussain Shahzad

    (MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier)

  • Gazi Salah Uddin

    (LIU - Linköping University)

Abstract

In this paper, we investigate the impact of the economic policy uncertainties on the tourism demand, by using multiple and partial wavelet analysis. We find that global economic policy uncertainties (EPUs) impact on tourism demand in various levels for different countries. The effect is on peak and stay longer in certain periods; such as GFC or 9/11. More importantly, novel to the literature, the domestic EPUs significantly affect the tourist inflows, indicating that policy holders need to take into account EPU fluctuations in forecasting the short-term and medium term tourism demand.

Suggested Citation

  • Faruk Balli & Syed Jawad Hussain Shahzad & Gazi Salah Uddin, 2018. "A tale of two shocks: What do we learn from the impacts of economic policy uncertainties on tourism?," Post-Print hal-02044848, HAL.
    • Handle: RePEc:hal:journl:hal-02044848
    DOI: 10.1016/j.tourman.2018.04.008
    as

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    Keywords

    EPU; tourism demand;

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