Are shadow economy and tourism related? International evidence
The present study attempts to investigate whether shadow economy and the tourism sector are related. In the European countries, Schneider reported that 20 to 25 per cent of the shadow economy is represented in the tourism-related industries – wholesale and retail, automotive and motorcycle sales and...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier Ltd
2016
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/18562/1/PEF%2035%202016%20173-178.pdf |
| _version_ | 1825804053075984384 |
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| author | Din, Badariah Habibullah, Muzafar Shah Baharom, A.H. Saari, M.D. |
| author_facet | Din, Badariah Habibullah, Muzafar Shah Baharom, A.H. Saari, M.D. |
| author_sort | Din, Badariah |
| collection | UUM |
| description | The present study attempts to investigate whether shadow economy and the tourism sector are related. In the European countries, Schneider reported that 20 to 25 per cent of the shadow economy is represented in the tourism-related industries – wholesale and retail, automotive and motorcycle sales and maintenance; transportation, storage and communications; and hotels and restaurants. For the tourism sector, the services given by operators (unregistered and/or underreporting) operate in the shadow economy will ultimately wiped off the map of high quality tourist destinations and destroyed the development of the tourism industry itself.This study examines the short-run and long-run relationships between international tourism receipts and shadow economy for 149 countries over the period 1995-2008. We use a generalized one-step error-correction model (ECM) in combination with a system Generalized Method of Moments (GMM) to explore the long-run relationship between these two variables. Our results suggest that tourism receipts and shadow economy are co integrated.This implies that shadow economy and the tourism industry worldwide are
related in the long-run.The long-run elasticities indicate a negative impact of the shadow economy on the tourism sector suggesting that increase in shadow economy activities will adversely affecting the tourism industry. |
| first_indexed | 2024-07-04T06:08:05Z |
| format | Article |
| id | uum-18562 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:08:05Z |
| publishDate | 2016 |
| publisher | Elsevier Ltd |
| record_format | eprints |
| spelling | uum-185622016-08-14T08:28:58Z https://repo.uum.edu.my/id/eprint/18562/ Are shadow economy and tourism related? International evidence Din, Badariah Habibullah, Muzafar Shah Baharom, A.H. Saari, M.D. HC Economic History and Conditions The present study attempts to investigate whether shadow economy and the tourism sector are related. In the European countries, Schneider reported that 20 to 25 per cent of the shadow economy is represented in the tourism-related industries – wholesale and retail, automotive and motorcycle sales and maintenance; transportation, storage and communications; and hotels and restaurants. For the tourism sector, the services given by operators (unregistered and/or underreporting) operate in the shadow economy will ultimately wiped off the map of high quality tourist destinations and destroyed the development of the tourism industry itself.This study examines the short-run and long-run relationships between international tourism receipts and shadow economy for 149 countries over the period 1995-2008. We use a generalized one-step error-correction model (ECM) in combination with a system Generalized Method of Moments (GMM) to explore the long-run relationship between these two variables. Our results suggest that tourism receipts and shadow economy are co integrated.This implies that shadow economy and the tourism industry worldwide are related in the long-run.The long-run elasticities indicate a negative impact of the shadow economy on the tourism sector suggesting that increase in shadow economy activities will adversely affecting the tourism industry. Elsevier Ltd 2016 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/18562/1/PEF%2035%202016%20173-178.pdf Din, Badariah and Habibullah, Muzafar Shah and Baharom, A.H. and Saari, M.D. (2016) Are shadow economy and tourism related? International evidence. Procedia Economics and Finance, 35. pp. 173-178. ISSN 2212-5671 http://doi.org/10.1016/S2212-5671(16)00022-8 doi:10.1016/S2212-5671(16)00022-8 doi:10.1016/S2212-5671(16)00022-8 |
| spellingShingle | HC Economic History and Conditions Din, Badariah Habibullah, Muzafar Shah Baharom, A.H. Saari, M.D. Are shadow economy and tourism related? International evidence |
| title | Are shadow economy and tourism related? International evidence |
| title_full | Are shadow economy and tourism related? International evidence |
| title_fullStr | Are shadow economy and tourism related? International evidence |
| title_full_unstemmed | Are shadow economy and tourism related? International evidence |
| title_short | Are shadow economy and tourism related? International evidence |
| title_sort | are shadow economy and tourism related international evidence |
| topic | HC Economic History and Conditions |
| url | https://repo.uum.edu.my/id/eprint/18562/1/PEF%2035%202016%20173-178.pdf |
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