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EXAMINING THE BEHAVIOUR OF VISITOR ARRIVALS TO AUSTRALIA FROM TWENTY DIFFERENT COUNTRIES: AN APPLICATION OF PANEL UNIT ROOT TESTS
Author(s) -
NARAYAN PARESH KUMAR,
PRASAD ARTI
Publication year - 2008
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/j.1759-3441.2008.tb01042.x
Subject(s) - visitor pattern , unit root , unit (ring theory) , unit root test , suite , tourism , economics , econometrics , geography , cointegration , mathematics , computer science , mathematics education , archaeology , programming language
Testing for the behaviour of visitor arrivals has important implications for policy, for if visitor arrivals are stationary processes then it implies that shocks to visitor arrivals are transitory. However, if visitor arrivals are found to be characterised by a unit root then this implies that shocks to visitor arrivals are permanent. In this paper we provide the first evidence on the unit root hypothesis for visitor arrivals to Australia using a suite of recently developed panel unit root tests. Our main finding is that visitor arrivals to Australia from twenty tourist source markets and from the G7 markets are mean reverting, implying that any shocks will have only a transitory effect. However, visitor arrivals from eight Asian countries are characterised by a unit root, implying that shocks will have a permanent effect on this market.