Cointegration relationship analysis of tourism and transportation in China

The relationship between transportation and tourism tops the agenda of the economics research. In this paper, cointegration analysis, error correction model and Granger causality estimation were used to test the relationship of China´s transportation level and tourism, based on the data from 1994 to 2009. Econometric software-Eviews 5.0 was used in calculation process. All the empirical studies were experienced several steps including unit root test on transportation level and tourism, cointegration test, first order and second order error correction model as well as Granger causality estimation. The empirical test showed that although the short-run fluctuation exists, there is a stable equilibrium relation between China´s transportation and tourism in the long run. In addition, on the comparison of between international and domestic tourism, it concluded that the transportation plays more significant role in promoting domestic tourism than international tourism.