Domestic tourism spending and economic vulnerability

Nguyen Phuc Canh; Su Dinh Thanh

doi:10.1016/j.annals.2020.103063

Domestic tourism spending and economic vulnerability

Ann Tour Res. 2020 Nov:85:103063. doi: 10.1016/j.annals.2020.103063. Epub 2020 Oct 20.

Authors

Nguyen Phuc Canh¹, Su Dinh Thanh²

Affiliations

¹ School of Banking, University of Economics Ho Chi Minh City, Ho Chi Minh 700000, Viet Nam.
² School of Public Finance, University of Economics Ho Chi Minh City, Ho Chi Minh 700000, Viet Nam.

Abstract

This study examines the influence of domestic tourism on economic vulnerability index (EVI). Domestic tourism spending has a significant effect in reducing EVI. These results are consistent with two sub-indices of EVI (shock index and exposure index). Interestingly, it is found that: (i) this impact is consistent in low- and lower-middle-income countries, while domestic tourism has a non-significantly effect in upper-middle and high-income countries of increasing EVI; (ii) these results are consistent in the long-run; and (iii) the impact of domestic tourism is consistent in both the 2002-2007 and 2008-2012 periods, but is statistically non-significant in the 2013-2017 period. Notably, we find that domestic tourism spending has a U-shape effect on EVI; while international tourism has an increasing effect.

Keywords: Panel data; Resilience; Time-varying; Tourism; Travel; Vulnerability.