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Are Shocks to Barbados Long-Stay Visitor Arrivals Permanent or Temporary: A Short Empirical Note

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  • Lorde, Troy
  • Francis, Brian
  • Skeete, Stephney

Abstract

The tourism industry is Barbados’ main source of foreign exchange and provides the basis for steady economic growth in the economy. Consequently, the permanence or transience of shocks can have a direct impact on the welfare of all Barbadian residents. Against this background, our study applied univariate and panel unit root tests to determine whether shocks to visitor arrivals to Barbados are permanent or temporary. Our empirical findings imply that exogenous shocks will have permanent effects on visitor arrivals to Barbados. Our recommendation is for tourism authorities to handle negative external shocks according to each particular market differently, since tourists, even with countries, are not a homogenous group.

Suggested Citation

  • Lorde, Troy & Francis, Brian & Skeete, Stephney, 2008. "Are Shocks to Barbados Long-Stay Visitor Arrivals Permanent or Temporary: A Short Empirical Note," MPRA Paper 95597, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:95597
    as

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    File URL: https://mpra.ub.uni-muenchen.de/95597/1/MPRA_paper_95597.pdf
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    References listed on IDEAS

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    Cited by:

    1. Dennis Nchor & Václav Klepáč & Václav Adamec, 2016. "Effects of Oil Price Shocks on the Ghanaian Economy," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 64(1), pages 315-324.

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    More about this item

    Keywords

    shocks; Barbados; visitor arrivals; unit roots; panel; seasonality;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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