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This study provides new insights into the relationship between economic policy uncertainty (EPU) and tourism activities in the BRIC (Brazil, Russia, India, and China) countries. We used continuous three-dimensional wavelets based on Granger causality analysis to investigate the relationship between EPU and tourism using the annual data. The finding shows that the relationships between the variables evolve through time and frequencies. We uncover significant wavelet coherence and strong lead–lag relationships changing over time, displaying low- to high-frequency cycles over the whole sample period.

Causality between Economic Policy Uncertainty and Tourism Using Three-dimensional Wavelet-based Approaches