Examining the Existence of Long-Run Relationships Between East Asian Economic Integration and ASEAN Tourism Exports

Abstract

This paper examines the existence of long-run relationships between East Asian economic integration and tourism exports for nine selected ASEAN States for the period 1996-2007. I employ tourist arrivals data as a proxy for tourism exports and trade ratios as a proxy for the economic integration. Using Johansen’s Fisher panel cointegration test, the findings show that tourist arrivals and trade ratios are cointegrated in seven out of nine Southeast Asia countries. This suggests that East Asia economic integration can be one of the important factors that influence international tourism demand to ASEAN States in the long-run. However, for Laos and Thailand, the tourist arrivals and trade ratios are not cointegrated.

Keywords: East Asia economic integration, ASEAN tourism, panel cointegration

JEL Classification: F15