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Mahalia Jackman and Troy Lorde
''On the Relationship between Tourist Flows and Household Expenditure in Barbados: A Dynamic OLS Approach''
( 2010, Vol. 30 No.1 )
Keynesians propose that increases in tourist arrivals are associated with an expansion in private spending through the multiplier effect. To test this hypothesis, this study augments a simple consumption function with tourist arrivals and employs the dynamic OLS method to compute the short and long run relationships of the variables. Results suggest that while tourist arrivals have a positive correlation with household expenditure in the short run, it does not Granger cause household expenditure consumption.
Keywords: Tourism, Consumption, Barbados, Dynamic OLS
JEL: L8 - Industry Studies: Services: General
E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
Manuscript Received : Aug 20 2009 Manuscript Accepted : Feb 08 2010

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