Tourism openness, trade openness, and currency-purchasing power in Brazil: A causality analysis

Elton Fernandes; Ricardo Rodrigues Pacheco; Vicente Aprigliano Fernandes

doi:10.1002/jtr.2254

Tourism openness, trade openness, and currency-purchasing power in Brazil: A causality analysis

Elton Fernandes, Ricardo Rodrigues Pacheco, Vicente Aprigliano Fernandes

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9 Scopus citations

Abstract

This paper examines the causality between tourism openness (TOOP), trade openness (TROP), and currency-purchasing power (BRPP) in Brazil and measures the future impact of innovations. Johansen cointegration tests and vector error correction estimates support the hypothesis that there is short-run and long-run, one-way Granger causality from TROP and BRPP to TOOP. Variance decomposition analysis shows a peak percent TOOP variance of 51% due to BRPP and TROP. BRPP shows as the main precedent variable to be observed for tourism planning. The analysis indicates that policymakers must consider BRPP and TROP in setting objectives for Brazilian tourism.

Original language	English
Pages (from-to)	197-205
Number of pages	9
Journal	International Journal of Tourism Research
Volume	21
Issue number	2
DOIs	https://doi.org/10.1002/jtr.2254
State	Published - 1 Mar 2019

Keywords

Brazil
Granger causality
cointegration
currency-purchasing power
tourism openness
trade openness

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10.1002/jtr.2254

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title = "Tourism openness, trade openness, and currency-purchasing power in Brazil: A causality analysis",

abstract = "This paper examines the causality between tourism openness (TOOP), trade openness (TROP), and currency-purchasing power (BRPP) in Brazil and measures the future impact of innovations. Johansen cointegration tests and vector error correction estimates support the hypothesis that there is short-run and long-run, one-way Granger causality from TROP and BRPP to TOOP. Variance decomposition analysis shows a peak percent TOOP variance of 51% due to BRPP and TROP. BRPP shows as the main precedent variable to be observed for tourism planning. The analysis indicates that policymakers must consider BRPP and TROP in setting objectives for Brazilian tourism.",

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AB - This paper examines the causality between tourism openness (TOOP), trade openness (TROP), and currency-purchasing power (BRPP) in Brazil and measures the future impact of innovations. Johansen cointegration tests and vector error correction estimates support the hypothesis that there is short-run and long-run, one-way Granger causality from TROP and BRPP to TOOP. Variance decomposition analysis shows a peak percent TOOP variance of 51% due to BRPP and TROP. BRPP shows as the main precedent variable to be observed for tourism planning. The analysis indicates that policymakers must consider BRPP and TROP in setting objectives for Brazilian tourism.

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KW - cointegration

KW - currency-purchasing power

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KW - trade openness

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Tourism openness, trade openness, and currency-purchasing power in Brazil: A causality analysis

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