In this paper, a vector autoregressive (VAR) framework is used to model international tourism demand from the five main inbound tourism countries for Portugal: Germany, Spain, France, the Netherlands and the UK. Given the non-stationarity of the variables considered, vector error correction models (VECMs) are estimated. These are then used to analyse the impulse response functions in order to determine how international tourism demand for Portugal reacts to shocks to some of its important drivers, such as income, the cost of living in Portugal and the cost of living in Spain (the last as representative of the price in the main competing market with Portugal).
|Number of pages||18|
|Publication status||Published - Jun 2012|
|Event||4th Biennial Conference on Advances in Tourism Economics (ATE) - Lisbon, Portugal|
Duration: 14 Apr 2011 → 15 Apr 2011
- impulse response function
- tourism demand