Price dynamics, foreign exchange and anticipated shocks in a tourism economy

Chao, Chi-Chur, Hu, Shih-Wen and Lu, Lee-Jung 2012, Price dynamics, foreign exchange and anticipated shocks in a tourism economy, Pacific economic review, vol. 17, no. 3, pp. 355-365, doi: 10.1111/j.1468-0106.2012.00587.x.

Attached Files
Name Description MIMEType Size Downloads

Title Price dynamics, foreign exchange and anticipated shocks in a tourism economy
Author(s) Chao, Chi-ChurORCID iD for Chao, Chi-Chur
Hu, Shih-Wen
Lu, Lee-Jung
Journal name Pacific economic review
Volume number 17
Issue number 3
Start page 355
End page 365
Total pages 11
Publisher Wiley-Blackwell Publishing Asia
Place of publication Richmond, Vic.
Publication date 2012-08
ISSN 1361-374X
Keyword(s) price dynamics
Summary Using a dynamic model of an open monetary economy, this paper examines the effects of tourism-related anticipated shocks on goods prices and foreign exchange reserves. Foreign tourists consume mainly non-traded goods in holiday destinations, converting them into exportable goods. This gives rise to a tourism terms-of-trade effect that affects the accumulation of foreign exchange. Announcements of anticipated events bring tourist visits forward, resulting in an initial under-adjustment or an over-adjustment in the prices of the non-traded goods when the tourism terms-of-trade effect is positive or negative. This leads to an increase or a decrease in foreign reserves in the long run.
Language eng
DOI 10.1111/j.1468-0106.2012.00587.x
Field of Research 140207 Financial Economics
Socio Economic Objective 900301 Economic Issues in Tourism
HERDC Research category C1 Refereed article in a scholarly journal
Persistent URL

Document type: Journal Article
Collections: Faculty of Business and Law
Deakin Business School
Connect to link resolver
Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved.

Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 2 times in TR Web of Science
Scopus Citation Count Cited 1 times in Scopus
Google Scholar Search Google Scholar
Access Statistics: 497 Abstract Views, 4 File Downloads  -  Detailed Statistics
Created: Fri, 02 Nov 2012, 11:36:56 EST by Aysun Alpyurek

Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact