The Relationships between Financial Policy, Fiscal Policy, Visitor Exports and the Tourism Economy of Thailand
Abstract
This objective of this research is to apply the Vector Autoregressive (VARs) model to study the relationships between the macroeconomic variables in the tourism sector by using Gross Domestic Product in the tourism sector of Thailand with interbank rates, individual government expenditures on tourism and visitor exports (foreign spending). Quarterly data from 1995 to 2016 with a total of 88 data sets are employed in the study. The results show that the interbank rate had the greatest impact on the gross national product of the tourism sector in Thailand at 9.17%. On the other hand, individual government expenditures on tourism had an impact of only 2.77%. Consequently, monetary policy will affect the economy of the tourism sector in Thailand more efficiently than fiscal policy. Therefore, the Thai government should implement fiscal policy together with monetary policy to boost the tourism economy and to increase competitiveness.
References
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*** World Travel and Tourism Council. 2017a. Total Contribution to GDP. Available at: https://www.wttc.org/datagateway/
*** World Travel and Tourism Council 2017b. Visitor Exports (Foreign spending). Available at: https://www.wttc.org/datagateway/
*** World Travel and Tourism Council 2017c. Individual Government Expenditure. Available at: https://www.wttc.org/datagateway/
*** Bank of Thailand. 2017. Interest Rates on Bank Loans. Available at: http://www2.bot.or.th/statistics/ReportPage.aspx?reportID
*** Department of Tourism. 2017. Tourism Statistics in 2007 -2016. Available at: http://www.mots.go.th/ewt_dl_link.php?nid=7114
[2] Chitchumnong, K. 2004. Factors affecting Thailand Tourism Revenue: A Case Study of Tourists from Japan Germany United Kingdom United States and China (Master’s Thesis, University of the Thai Chamber of Commerce, Bangkok, Thailand). Available at: http://www.thailis.or.th/tdc/basic.php [In Thai].
[3] Engle, R.F., and Granger, C.J. 1987. Cointegration and error correction: Representation, estimation and testing. Econometrica, 55: 251 -276
[4] Kanluan, S. 2006. Effects of Thailand’s Economy from International Tourist Expenditure (Master’s Thesis, Ramkhamheang University, Bangkok, Thailand). Available at: http://www.thailis.or.th/tdc/basic.php [In Thai].
[5] MacKinnon, J.G. 1996. Numerical Distribution Functions for Unit Root and Cointegration Tests, Journal of Applied Econometrics, 11: 601-618.
[6] Nasakornkriengdej, N. 2005. Relationship between Government Expenditure and Economic Growth of Thailand (Master’s Thesis, University of Chiang Mai, Chiang Mai, Thailand). Available at: http://www.thailis.or.th/tdc/basic.php.[In Thai]
[7] Nonthapot, S. 2016. Mediation between Tourism Contribution and Economic Growth in the Greater Mekong Subregion. Asia Pacific Journal of Tourism Research, 21(2):157–171. DOI: http://dx.doi.org/10.1080/10941665.2015.1029953
[8] Nonthapot, S. 2014. The Relationship between Tourism and Economic Development in the Greater Mekong Sub-Region: Panel Cointegration and Granger Causality. Journal of Advanced Research in Law and Economics, 5(1): 44-51, DOI: https://doi.org/10.14505//jarle.v5.1(9).05
[9] Ohlan, R. 2017. The relationship between tourism, financial development and economic growth in India. Future Business Journal, 3(1) : 9–22. DOI: https://doi.org/10.1016/j.fbj.2017.01.003
[10] Pensupar, K., Saraithong, W., Jongsasakul, V., Phipoblarpanan, C., Chancharoenchai, K. and Chingthongkam, P. 2011. Impacts of Monetary and Fiscal Policy on Thai’s Export. Bangkok. The Secretariat of the Senate. [In Thai].
[11] Phillips, P.C.B., Perron, P. 1988. Testing for a Unit Root in Time Series Regression. Biometrika, 75(2): 335-346.
[12] Polpakdee, S. 2012. The Impacts of Monetary and Fiscal Policies on Gross Domestic Product and Employment of Thailand (Master’s Thesis, Khon Kaen University, Khon Kaen, Thailand). Available at: http://www.thailis.or.th/tdc/basic.php [In Thai].
[13] Ratanasri, A. 2013. Monetary and Fiscal Policy Affecting the Thai Production Sector (Master’s Thesis, Ramkhamheang University, Bangkok, Thailand). Available at: http://www.thailis.or.th/tdc/basic.php [In Thai].
[14] Rongkad, W. 2014. Impact of Fiscal Policy on Macroeconomic Variables of Thailand (Master’s Thesis, University of Chiang Mai, Chiang Mai, Thailand). Available at: http://www.thailis.or.th/tdc/basic.php.[In Thai]
[15] Said, S.E., and Dickey D.A. 1984. Testing for Unit Root in Autoregressive-Moving Average Models of Unknown Order, Biometrika ,71 (3): 599-607
[16] Thammawong, L. 2009. The Relationship Between the Money Supply and Economic Growth in Thailand (Master’s Thesis, Ramkhamheang University, Bangkok, Thailand). Available at: http://www.thailis.or.th/tdc/basic.php [In Thai]
[17] Yimsiriwattana, P. 2003. The Comparison of Effectiveness of Monetary and Fiscal Policies in Thailand. (Master’s Thesis, Ramkhamheang University, Bangkok, Thailand). Available at: http://www.thailis.or.th/tdc/basic.php.[In Thai].
*** World Travel and Tourism Council. 2017a. Total Contribution to GDP. Available at: https://www.wttc.org/datagateway/
*** World Travel and Tourism Council 2017b. Visitor Exports (Foreign spending). Available at: https://www.wttc.org/datagateway/
*** World Travel and Tourism Council 2017c. Individual Government Expenditure. Available at: https://www.wttc.org/datagateway/
*** Bank of Thailand. 2017. Interest Rates on Bank Loans. Available at: http://www2.bot.or.th/statistics/ReportPage.aspx?reportID
*** Department of Tourism. 2017. Tourism Statistics in 2007 -2016. Available at: http://www.mots.go.th/ewt_dl_link.php?nid=7114
Published
2018-01-24
How to Cite
NONTHAPOT, Sakkarin; SRICHAIYO, Porowes.
The Relationships between Financial Policy, Fiscal Policy, Visitor Exports and the Tourism Economy of Thailand.
Journal of Environmental Management and Tourism, [S.l.], v. 8, n. 6, p. 1222-1231, jan. 2018.
ISSN 2068-7729.
Available at: <https://journals.aserspublishing.eu/jemt/article/view/1649>. Date accessed: 25 apr. 2024.
doi: https://doi.org/10.14505//jemt.v8.6(22).09.
Section
Article
Copyright© 2023 The Author(s). Published by ASERS Publishing 2023. This is an open access article distributed under the terms of CC-BY 4.0 license.