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Tourism openness, trade openness, and currency‐purchasing power in Brazil: A causality analysis
Author(s) -
Fernandes Elton,
Pacheco Ricardo Rodrigues,
Fernandes Vicente Aprigliano
Publication year - 2018
Publication title -
international journal of tourism research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.155
H-Index - 58
eISSN - 1522-1970
pISSN - 1099-2340
DOI - 10.1002/jtr.2254
Subject(s) - openness to experience , cointegration , variance decomposition of forecast errors , causality (physics) , economics , tourism , currency , monetization , granger causality , purchasing power , variance (accounting) , error correction model , credibility , econometrics , monetary economics , international economics , macroeconomics , geography , political science , psychology , social psychology , physics , accounting , archaeology , quantum mechanics , law
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.