Moderation analysis of exchange rate, tourism and economic growth in Asia.
This study brings novelty to the tourism literature by re-examining the role of exchange rate in the tourism-growth nexus. It differs from previous tourism-led growth narrative to probe whether tourism exerts a positive effect on economic growth when the exchange rate is accounted for. Using a moder...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Public Library of Science (PLoS)
2022-01-01
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| Series: | PLoS ONE |
| Online Access: | https://doi.org/10.1371/journal.pone.0279937 |
| _version_ | 1797943994925187072 |
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| author | Bosede Ngozi Adeleye Jimoh Sina Ogede Mustafa Raza Rabbani Lukman Shehu Adam Maria Mazhar |
| author_facet | Bosede Ngozi Adeleye Jimoh Sina Ogede Mustafa Raza Rabbani Lukman Shehu Adam Maria Mazhar |
| author_sort | Bosede Ngozi Adeleye |
| collection | DOAJ |
| description | This study brings novelty to the tourism literature by re-examining the role of exchange rate in the tourism-growth nexus. It differs from previous tourism-led growth narrative to probe whether tourism exerts a positive effect on economic growth when the exchange rate is accounted for. Using a moderation modelling framework, instrumental variables general method of moments (IV-GMM) and quantile regression techniques in addition to real per capita GDP, tourism receipts and exchange rate, the study engages data on 44 Asian countries from 2010 to 2019. Results from the IV-GMM show that: (1) tourism exerts a positive effect on growth; (2) exchange rate depreciation hampers growth; (3) the interaction effect is positive but statistically not significant; and (4) results from EAP and SA samples are mixed. For the most part, constructive evidence from the quantile regression techniques reveals that the impact of tourism and exchange is significant at lower quantiles of 0.25 and 0.50 while the interaction effect is negative and statistically significant only for the SA sample. These are new contributions to the literature and policy recommendations are discussed. |
| first_indexed | 2024-04-10T20:32:44Z |
| format | Article |
| id | doaj.art-4e6db11d6412427aac630b81c5600c4a |
| institution | Directory Open Access Journal |
| issn | 1932-6203 |
| language | English |
| last_indexed | 2024-04-10T20:32:44Z |
| publishDate | 2022-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj.art-4e6db11d6412427aac630b81c5600c4a2023-01-25T05:32:37ZengPublic Library of Science (PLoS)PLoS ONE1932-62032022-01-011712e027993710.1371/journal.pone.0279937Moderation analysis of exchange rate, tourism and economic growth in Asia.Bosede Ngozi AdeleyeJimoh Sina OgedeMustafa Raza RabbaniLukman Shehu AdamMaria MazharThis study brings novelty to the tourism literature by re-examining the role of exchange rate in the tourism-growth nexus. It differs from previous tourism-led growth narrative to probe whether tourism exerts a positive effect on economic growth when the exchange rate is accounted for. Using a moderation modelling framework, instrumental variables general method of moments (IV-GMM) and quantile regression techniques in addition to real per capita GDP, tourism receipts and exchange rate, the study engages data on 44 Asian countries from 2010 to 2019. Results from the IV-GMM show that: (1) tourism exerts a positive effect on growth; (2) exchange rate depreciation hampers growth; (3) the interaction effect is positive but statistically not significant; and (4) results from EAP and SA samples are mixed. For the most part, constructive evidence from the quantile regression techniques reveals that the impact of tourism and exchange is significant at lower quantiles of 0.25 and 0.50 while the interaction effect is negative and statistically significant only for the SA sample. These are new contributions to the literature and policy recommendations are discussed.https://doi.org/10.1371/journal.pone.0279937 |
| spellingShingle | Bosede Ngozi Adeleye Jimoh Sina Ogede Mustafa Raza Rabbani Lukman Shehu Adam Maria Mazhar Moderation analysis of exchange rate, tourism and economic growth in Asia. PLoS ONE |
| title | Moderation analysis of exchange rate, tourism and economic growth in Asia. |
| title_full | Moderation analysis of exchange rate, tourism and economic growth in Asia. |
| title_fullStr | Moderation analysis of exchange rate, tourism and economic growth in Asia. |
| title_full_unstemmed | Moderation analysis of exchange rate, tourism and economic growth in Asia. |
| title_short | Moderation analysis of exchange rate, tourism and economic growth in Asia. |
| title_sort | moderation analysis of exchange rate tourism and economic growth in asia |
| url | https://doi.org/10.1371/journal.pone.0279937 |
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