The dynamic linkages among outbound tourism, economic growth, and international trade: empirical evidence from China

Chien-Ming Wang; Su-Lan Pan; Alastair M Morrison; Tsung-Pao Wu

doi:10.1007/s43546-022-00314-2

The dynamic linkages among outbound tourism, economic growth, and international trade: empirical evidence from China

SN Bus Econ. 2022;2(11):169. doi: 10.1007/s43546-022-00314-2. Epub 2022 Oct 11.

Authors

Chien-Ming Wang¹, Su-Lan Pan², Alastair M Morrison³, Tsung-Pao Wu⁴

Affiliations

¹ Department of International Business, Ming Chuan University, Taipei, Taiwan.
² School of Tourism and Hospitality Management, Hubei University of Economics, Wuhan, China.
³ School of Management and Marketing, Greenwich Business School, University of Greenwich, London, UK.
⁴ School of Accounting and Finance in Beijing Institute of Technology, Zhuhai, China.

Abstract

The aim of this research was to examine the long- and short-run relationships among real expenditures on outbound tourism from China, economic growth and international trade for the period of 1995 to 2018, applying a newly developed cointegration test-the Bootstrap Autoregressive Distributed Lag framework. Evidence of cointegration was found when expenditures on outbound tourism served as the dependent variable, and economic growth and international trade were important factors affecting outbound tourism from China. For the short-run, a two-way Granger causality relationship was detected between economic growth and outbound tourism expenditures, and the feedback was confirmed between outbound tourism expenditures and international trade. The findings have important policy implications for the growth of the outbound tourism market. Large volumes of outbound tourists result in economic losses for China and outbound tourism reduces the growth of tourism-driven international trade.

Keywords: Bootstrap ARDL test; China; Cointegration; Economic growth; International trade; Outbound tourism.

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