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Are shadow economy and tourism related? International evidence

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dc.contributor.authorBadariah H. Din
dc.contributor.authorMuzafar Shah Habibullah
dc.contributor.authorM. D. Saari
dc.contributor.authorBaharom Abdul Hamid
dc.date.accessioned2016-06-06
dc.date.accessioned2016-07-25T18:56:52Z
dc.date.available2016-06-06
dc.date.available2016-07-25T18:56:52Z
dc.date.disclosure2016-06-10
dc.date.issued2016
dc.description.abstractThe present study attempts to investigate whether shadow economy and the tourism sector are related. In the European countries, Schneider reported that 20 to 25 per cent of the shadow economy is represented in the tourism-related industries – wholesale and retail, automotive and motorcycle sales and maintenance; transportation, storage and communications; and hotels and restaurants. For the tourism sector, the services given by operators (unregistered and/or underreporting) operate in the shadow economy will ultimately wiped off the map of high quality tourist destinations and destroyed the development of the tourism industry itself. This study examines the short-run and long-run relationships between international tourism receipts and shadow economy for 149 countries over the period 1995-2008. We use a generalized one-step error-correction model (ECM) in combination with a system Generalized Method of Moments (GMM) to explore the long-run relationship between these two variables. Our results suggest that tourism receipts and shadow economy are cointegrated. This implies that shadow economy and the tourism industry worldwide are related in the long-run. The long-run elasticities indicate a negative impact of the shadow economy on the tourism sector suggesting that increase in shadow economy activities will adversely affecting the tourism industry.
dc.identifier.citationDin, Badariah H. and Habibullah, Muzafar Shah and Abdul Hamid, Baharom and Saari, M. D. (2016). Are shadow economy and tourism Related? International evidence. Procedia Economics and Finance, 35, pp. 173-178.
dc.identifier.doihttps://doi.org/10.1016/S2212-5671(16)00022-8
dc.identifier.urihttps://ikr.inceif.edu.my/handle/INCEIF/1277
dc.languageEnglish
dc.language.isoeng
dc.publisherElsevier
dc.rights2016. Elsevier
dc.sourceCRP
dc.subjectTourism
dc.subjectShadow economy
dc.subjectGovernance
dc.subjectError-correction
dc.subjectSystem GMM
dc.titleAre shadow economy and tourism related? International evidence
dc.typeJournal Article
dlc.maintopicConventional finance
dlc.subtopicEconomics
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicConventional finance
ikr.topic.subtopicConventional finance
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