An Empirical Study on the Relationship of Real Exchange Rate of RMB and Chinese Inbound Tourism from America

Author

Zhang, Genneng ; Pu, Tingting ; Zhang, Pei

Author_Institution

Fac. of Econ. & Manage., Xi´´an Univ. of Technol., Xi´´an, China

fYear

2011

fDate

12-14 Aug. 2011

Firstpage

1

Lastpage

4

Abstract

Adopting the econometric methodology of unit root test and co-integration analysis, this paper makes an empirical analysis on the relationship of real exchange rate of RMB and Chinese inbound tourism from America. It finds that there exists a long-run co-integration relationship among Real exchange rate of RMB, American economy and Chinese inbound tourism from America. The elasticity coefficient of Chinese inbound tourism from America to American economy is 6.02, on the high side. The elasticity of Chinese inbound tourism from America to Real exchange rate of RMB is small, the elasticity coefficient is 1.62.It also finds that both Real exchange rate of RMB and American real GDP are the Granger causes of Chinese inbound tourism from America, and Chinese inbound tourism from America is also the Granger cause of America real GDP, but Chinese inbound tourism from America is not the Granger cause of Real exchange rate of RMB.

Keywords

causality; econometrics; economic indicators; exchange rates; statistical analysis; travel industry; American economy; American real GDP; Chinese inbound tourism; Granger cause; RMB real exchange rate; cointegration analysis; cointegration relationship; econometric methodology; elasticity coefficient; unit root test; Analytical models; Econometrics; Economic indicators; Exchange rates; Time series analysis; Yttrium;

fLanguage

English

Publisher

ieee

Conference_Titel

Management and Service Science (MASS), 2011 International Conference on

Conference_Location

Wuhan

Print_ISBN

978-1-4244-6579-8

Type

conf

DOI

10.1109/ICMSS.2011.5998709

Filename

5998709