Granger Causality Analysis on Indonesia and Malaysia Business Sectors - Softcover

Prasetya, Donny Bagus

Softcover

ISBN 10: 365938884X ISBN 13: 9783659388842

Publisher: LAP LAMBERT Academic Publishing, 2013

Synopsis

Tourism and export are important business sectors for economic growth, and plays important roles in developing countries such as Indonesia and Malaysia. To examine the causality among tourism, using international tourist arrivals (ITA) as a proxy, export, and economic growth, using real GDP as a proxy, Johansen's cointegration test and Granger causality have been employed. The relationship among tourism, export, and economic growth is essential to policy development in developing countries. By using annual data from 1980 to 2010, for Indonesia’s time series, results show that bidirectional Granger causality runs between tourism and export. While, a unidirectional Granger causality runs from GDP to export as well as from GDP to tourism. Meanwhile, for Malaysia’s time series, results show that there is no Granger causality between variables. However, neither export-led growth hypothesis nor tourism-led hypothesis is supported for both Indonesia’s and Malaysia’s time series.

About this title

About the Author:

Donny Bagus Prasetya graduated from Graduate School of International Trade, Chinese Culture University, Taiwan. He earned his Bachelor's degree from International Relations' Department, Airlangga University, Indonesia. His research field is international political economy.

About this edition

• Publisher: LAP LAMBERT Academic Publishing
• Publication date: 2013
• ISBN 10: 365938884X
• ISBN 13: 9783659388842
• Binding: Paperback
• Number of pages: 100