Effects of Exchange Rate Volatility on Tourist Flows into Iceland

Autor:	Dimitrios Serenis, Nicholas Tsounis, George M. Agiomirgianakis
Rok vydání:	2015
Předmět:	Cointegration Logarithm Financial economics Iceland General Engineering Energy Engineering and Power Technology Standard deviation Exchange Rate Volatility ARDL Exchange rate Autoregressive model Moving average tourism Forward volatility Econometrics Economics Volatility (finance)
Zdroj:	Procedia Economics and Finance. 24:25-34
ISSN:	2212-5671
DOI:	10.1016/s2212-5671(15)00608-5
Popis:	This paper examines the effect of Exchange Rate Volatility (ERV) for Iceland, on tourist arrivals exports during the period of first quarter of 1990 to fourth quarter of 2014. It is claimed by some researchers that exchange rate volatility causes a reduction on tourist arrivals. Empirical researchers often utilize the standard deviation of the moving average of the logarithm of the exchange rate as a measure of exchange rate fluctuation. In this study, a new measure for measuring volatility is proposed. The empirical methodology used relies upon the theory of cointegration, error correction representation of the exchange rate volatility measures using the Autoregressive Distributed Lags (ARDL) modeling to cointegration. Overall, our findings suggest that there is a negative effect of volatility to tourists’ arrivals for Iceland.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::9777fa2c64bc0cb8296f15f9413a2d09 https://doi.org/10.1016/s2212-5671(15)00608-5 Zobrazit plný text záznamu