Authors : Elham Barati and Homayoun Ranjbar
Abstract: Revenue from tourism as part of the gross domestic product of host country, directly affects the economic growth of that country. The travel cost to the destination country decreases and the willingness to travel to that country increases with the increase in the real exchange rate. The aim of this study was to examine the granger and dynamic causality between the actual receipts of the tourism variables, real national income and the real exchange rate in the period of 1995-2011. In the selection of the countries of the Mediterranean sea, Southeast Asia, Latin America and Iran by using Generalized Method of Moments (GMM). In general the results of Granger causality test indicate that all three types of mutual short and long time and strong causality are between the two by two studied variables. Also estimation of the relationships of long-term results confirmed by the vector error correction model show that the coefficients of real national income and real exchange rate have positive relationship with the dependent variable of real receipts from tourism. Also real exchange rate as the dependent variable has the negative relationship with national income and vice versa and the real exchange rate and national income each one as the dependent variable has a significant and positive relationship with actual receipts from tourism.
Elham Barati and Homayoun Ranjbar, 2016. Granger Causality and Dynamic Relationship Between the Actual Values of Receipts Derived from Tourism, National Income and Exchange Rates in Selected Countries with Tourist Attraction. International Business Management, 10: 3389-3395.