Claim Missing Document
Check
Articles

Found 1 Documents
Search
Journal : E-Journal of Tourism

An Error Correction Model Analysis of Indonesia’s Tourism and International Trade Tonny Hendratono; Veny Anindya Puspitasari
E-Journal of Tourism Volume 5 Number 2 (September 2018)
Publisher : Centre of Excellence in Tourism Udayana University

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (464.469 KB) | DOI: 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