An Error Correction Model Analysis of Indonesia’s Tourism and International Trade

  • Tonny Hendratono Universitas Bunda Mulia Indonesia
  • Veny Anindya Puspitasari Universitas Bunda Mulia Jakarta
DOI: https://doi.org/10.24922/eot.v5i2.42591

Abstract

The tourism sector is the mainstay of Indonesia's foreign exchange contributor. Through its affordability with various other sectors, tourism is considered to be able to influence the country's international trade through the mechanism of exports and imports. This study aims to analyze the influence of tourism on Indonesia's trade balance in the short and long term. The theory of comparative advantage and Heckscher-Ohlin are aimed to answer the purpose of this study. Using the Error Correction Model (ECM), this research shows that tourism has a positive and significant impact on exports and imports in the long and short term. However, in the long term the influence of tourism on imports is greater than that of exports. The opposite thing is happened in the short term.
Keywords: tourism, international trade, Error Correction Model

Downloads

Download data is not yet available.

References

Central Bureau of Statistics (2018) Laporan Perekonomian Indonesia 2017. Available at: https://www.bps.go.id/publication/2017/09/27/96607b0fa1ba5649ce573500/laporan-perekonomian-indonesia-2017.html (Accessed: 10 August 2018).

Engle, R. F. and Granger, C. W. J. (1987) ‘Co-integration and error correction: representation, estimation, and testing’, Econometrica: journal of the Econometric Society. JSTOR, pp. 251–276.

Gujarati, D. N. (2009) Basic econometrics. Tata McGraw-Hill Education.

Khan, H. and Lin, C. C. (2002) ‘International trade and tourism: Evidence from cointegration and causality tests by using Singapore data’, in The 33rd Annual Conference of Travel and Tourism Association (TTRA), pp. 23–26.

Ministry of Trade (2015) Geliat Ekspor Law No. 17 of 2007 concerning the 2005-2025 National Long Term Development Plan Pariwisata. Available at: http://djpen.kemendag.go.id/app_frontend/admin/docs/publication/9201455003103.pdf (Accessed: 10 August 2018).

Prodjo, W. (2017) Tren 2017 Masih Wisata Bahari yang ‘Instagramable’. Available at: https://travel.kompas.com/read/2017/01/04/151400927/tren.2017.masih.wisata.bahari.yang.instagramable. (Accessed: 10 August 2018).

Santana-Gallego, M., Ledesma-Rodríguez, F. and Pérez-Rodríguez, J. V (2011) ‘Tourism and trade in OECD countries. A dynamic heterogeneous panel data analysis’, Empirical Economics. Springer, 41(2), p. 533.

Spillane, J. J. (1994) ‘Siasat Ekonomi dan Rekayasa Kebudayaan Pariwisata Indonesia’. Yogyakarta (ID): Kanisius.

Visitpare (2017) Memahami Karakter & Budaya Wisatawan Mancanegara. Available at: https://visitpare.com/seni-dan-budaya/memahami-karakter-budaya-wisatawan-mancanegara/ (Accessed: 10 August 2018).
Published
2018-09-29
How to Cite
HENDRATONO, Tonny; PUSPITASARI, Veny Anindya. An Error Correction Model Analysis of Indonesia’s Tourism and International Trade. E-Journal of Tourism, [S.l.], p. 85-93, sep. 2018. ISSN 2407-392X. Available at: <https://ojs.unud.ac.id/index.php/eot/article/view/42591>. Date accessed: 04 nov. 2024. doi: https://doi.org/10.24922/eot.v5i2.42591.
Citation Formats
Issue
Volume 5 Number 2 (September 2018)
Section
Articles

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

The copyright of the received article shall be assigned to the journal as the publisher of the journal. The intended copyright includes the right to publish the article in various forms (including reprints). The journal maintains the publishing rights to the published articles.