Assessing the impact of tourism on sustainable economic development in Indonesia: A comprehensive analysis using the Fourier bootstrap autoregressive distributed lag approach
Vol 8, Issue 14, 2024
VIEWS - 0 (Abstract) 0 (PDF)
Abstract
This research analyzes the relationship between political stability, renewable energy utilization, economic progress, and tourism in Indonesia from 1990 to 2020. We employ advanced econometric techniques, including the Fourier Bootstrap Autoregressive Distributed Lag (ARDL) approach and Fourier Toda-Yamamoto causality testing, to ensure the robustness of our results while accounting for smooth structural changes in the data. The analysis uncovers a long-term equilibrium relationship between tourism and its fundamental determinants. Our research reveals significant positive impacts of political stability and renewable energy consumption on tourism in Indonesia. A stable political environment creates a favorable climate for tourism development, instilling confidence in both domestic and international tourists. Promoting renewable energy usage aligns with sustainable tourism practices, attracting environmentally conscious travelers. Furthermore, our findings demonstrate a bi-directional causal relationship between these variables over time. Changes in political stability, renewable energy consumption, and economic growth profoundly influence the tourism sector, while the growth of tourism itself can also stimulate economic development and foster political stability. Our findings underscore the need for environmentally sustainable and politically stable tourism policies. Indonesia’s tourism sector can grow sustainably with renewable energy and stability. Policymakers can develop strategies with tourism, political stability, renewable energy, and economic prosperity in mind.
Keywords
Full Text:
PDFReferences
Ahmed, M., Shuai, C., Abbas, K., et al. (2022). Investigating health impacts of household air pollution on woman’s pregnancy and sterilization: Empirical evidence from Pakistan, India, and Bangladesh. Energy, 247(c), 123562. https://doi.org/10.1016/j.energy.2022.123562
Alam, M. S., Bala, B. K., Huq, A. M. Z., Matin, M. A. (1991). A model for the quality of life as a function of electrical energy consumption. Energy, 16(4), 739–745. https://doi.org/10.1016/0360-5442(91)90023-F
Algieri, B. (2006). An econometric estimation of the demand for tourism: the case of Russia. Tourism Economics, 12(1), 5–20. https://doi.org/10.5367/000000006776387114
Andereck, K. L., Nyaupane, G. P. (2011). Exploring the nature of tourism and quality of life perceptions among residents. Journal of travel research, 50(3), 248–260. https://doi.org/10.1177/0047287510362918
Andereck, K. L., Vogt, C. A. (2000). The relationship between residents’ attitudes toward tourism and tourism development options. Journal of Travel research, 39(1), 27–36. https://doi.org/10.1177/004728750003900104
Arent, D. J., Wise, A., Gelman, R. (2011). The status and prospects of renewable energy for combating global warming. Energy Economics, 33(4), 584–593. https://doi.org/10.1016/j.eneco.2010.11.003
Balaguer, J., Cantavella-Jorda, M. (2002). Tourism as a long-run economic growth factor: the Spanish case. Applied economics, 34(7), 877–884. https://doi.org/10.1080/00036840110058923
Balsalobre-Lorente, D., Driha, O. M., Bekun, F. V., Adedoyin, F. F. (2021). The asymmetric impact of air transport on economic growth in Spain: fresh evidence from the tourism-led growth hypothesis. Current issues in tourism, 24(4), 503–519. https://doi.org/10.1080/13683500.2020.1720624
Bamati, N., Raoofi, A. (2020). Development level and the impact of technological factor on renewable energy production. Renewable Energy, 151(C), 946–955. https://doi.org/10.1016/j.renene.2019.11.098
Barbhuiya, M. R., Chatterjee, D. (2020). Vulnerability and resilience of the tourism sector in India: Effects of natural disasters and internal conflict. Tourism Management Perspectives, 33(2), 100616. https://doi.org/10.1016/j.tmp.2019.100616
Beer, C., Ciais, P., Reichstein, M., et al. (2009). Temporal and among‐site variability of inherent water use efficiency at the ecosystem level. Global biogeochemical cycles, 23(2), 1–13. https://doi.org/10.1029/2008GB003233
Ben Jebli, M., Ben Youssef, S., Apergis, N. (2019). The dynamic linkage between renewable energy, tourism, CO2 emissions, economic growth, foreign direct investment, and trade. Latin American Economic Review, 28(1), 1–19. https://doi.org/10.1186/s40503-019-0063-7
BP. (2021). BP Statistical Review of World Energy 2021. Available online: https://jpt.spe.org/twa/bp-statistical-review-of-world-energy-2021 (accessed on 30 July 2024).
Chancellor, M. B., Migliaccio-Walle, K., Bramley, T. J., et al. (2013). Long-term patterns of use and treatment failure with anticholinergic agents for overactive bladder. Clinical therapeutics, 35(11), 1744–1751. https://doi.org/10.1016/j.clinthera.2013.08.017
Croes, R., Ridderstaat, J., van Niekerk, M. (2018). Connecting quality of life, tourism specialization, and economic growth in small island destinations: The case of Malta. Tourism Management, 65(C), 212–223. https://doi.org/10.1016/j.tourman.2017.10.010
Enders, W., Lee, J. (2012). The flexible Fourier form and Dickey–Fuller type unit root tests. Economics Letters, 117(1), 196–199. https://doi.org/10.1016/j.econlet.2012.04.081
Eren, B. M., Taspinar, N., Gokmenoglu, K. K. (2019). The impact of financial development and economic growth on renewable energy consumption: Empirical analysis of India. Science of the Total Environment, 663, 189–197. https://doi.org/10.1016/j.scitotenv.2019.01.323
Ertay, T., Kahraman, C., Kaya, İ. (2013). Evaluation of renewable energy alternatives using MACBETH and fuzzy AHP multicriteria methods: The case of Turkey. Technological and economic development of economy, 19(1), 38–62. https://doi.org/10.3846/20294913.2012.762950
Figini, P., Vici, L. (2010). Tourism and growth in a cross section of countries. Tourism Economics, 16(4), 789–805. https://doi.org/10.5367/te.2010.0009
Ghosh, S., May, M. J., Kopp, E. B. (1998). NF-κB and Rel proteins: evolutionarily conserved mediators of immune responses. Annual review of immunology, 16(1), 225–260. https://doi.org/10.1146/annurev.immunol.16.1.225
Gössling, S., Hall, C. M., Scott, D. (2018). Coastal and ocean tourism. In: Salomon, M., Markus, T. (editors). Handbook on marine environment protection: Science, impacts and sustainable management. Springer. pp. 657–670. https://doi.org/10.1007/978-3-319-60156-4_40
Ingram, D. A., Mead, L. E., Tanaka, H., et al. (2004). Identification of a novel hierarchy of endothelial progenitor cells using human peripheral and umbilical cord blood. Blood, 104(9), 2752–2760. https://doi.org/10.1182/blood-2004-04-1396
Issa, I. A., Altinay, L. (2006). Impacts of political instability on tourism planning and development: The case of Lebanon. Tourism Economics, 12(3), 361–381. https://doi.org/10.5367/000000006778493664
Kahneman, D., Krueger, A. B. (2006). Developments in the measurement of subjective well-being. Journal of Economic perspectives, 20(1), 3–24. https://doi.org/10.1257/089533006776526030
Katircioglu, S. T. (2014). International tourism, energy consumption, and environmental pollution: The case of Turkey. Renewable and Sustainable Energy Reviews, 36, 180–187. https://doi.org/10.1016/j.rser.2014.04.058
Khoso, A. K., Darazi, M. A., Mahesar, K. A., et al. (2022). The impact of ESL teachers’ emotional intelligence on ESL Students academic engagement, reading and writing proficiency: mediating role of ESL students motivation. International Journal of Early Childhood Special Education, 14(1), 3267–3280.
Khoso, A. K., Khurram, S., Chachar, Z. A. (2024). Exploring the Effects of Embeddedness-Emanation Feminist Identity on Language Learning Anxiety: A Case Study of Female English as A Foreign Language (EFL) Learners in Higher Education Institutions of Karachi. International Journal of Contemporary Issues in Social Sciences, 3(1), 1277–1290.
Kim, J., Bentley, P. J., Aickelin, U., et al. (2007). Immune system approaches to intrusion detection–a review. Natural computing, 6, 413–466. https://doi.org/10.1007/s11047-006-9026-4
Kong, W. K. F., Bax, J. J., Michelena, H. I., Delgado, V. (2020). Sex differences in bicuspid aortic valve disease. Progress in Cardiovascular Diseases, 63(4), 452–456. https://doi.org/10.1016/j.pcad.2020.06.004
Lee, J. W., Brahmasrene, T. (2013). Investigating the influence of tourism on economic growth and carbon emissions: Evidence from panel analysis of the European Union. Tourism management, 38(7), 69–76. https://doi.org/10.1016/j.tourman.2013.02.016
Li, N., Mohd Ariffin, S. Z., Gao, H. (2024). Optimizing Ecotourism in North Taihu Lake, Wuxi City, China: Integrating Back Propagation Neural Networks and Ant-Colony Algorithm for Sustainable Route Planning. International Journal of Management Thinking, 2(1), 1–15. https://doi.org/10.56868/ijmt.v2i1.53.
Liu, H., Zhu, Q., Khoso, W. M., Khoso, A. K. (2023). Spatial pattern and the development of green finance trends in China. Renewable Energy, 211(C), 370–378. https://doi.org/10.1016/j.renene.2023.05.014.
Lu, L., Li, G. Y., Swindlehurst, A. L., et al. (2014). An overview of massive MIMO: Benefits and challenges. IEEE journal of selected topics in signal processing, 8(5), 742–758. https://doi.org/10.1109/JSTSP.2014.2317671.
MacInnes, S., Grün, B., Dolnicar, S. (2022). Habit drives sustainable tourist behaviour. Annals of Tourism Research, 92(1), 103329. https://doi.org/10.1016/j.annals.2021.103329
Makhdoom, Z. H., Gao, Y., Song, X., et al. (2023). Linking environmental corporate social responsibility to firm performance: The role of partnership restructure. Environmental Science and Pollution Research, 30(16), 48323–48338. https://doi.org/10.1007/s11356-023-25776-1
Marzuki, M., Kozu, T., Shimomai, T., et al. (2009). Diurnal variation of rain attenuation obtained from measurement of raindrop size distribution in equatorial Indonesia. IEEE Transactions on Antennas and Propagation, 57(4), 1191–1196. https://doi.org/10.1109/TAP.2009.2015812
McNown, R., Sam, C. Y., Goh, S. K. (2018). Bootstrapping the autoregressive distributed lag test for cointegration. Applied Economics, 50(13), 1509–1521. https://doi.org/10.1080/00036846.2017.1366643
Nastasi, C., Candela, M., Bonefeld, C. M., et al. (2015). The effect of short-chain fatty acids on human monocyte-derived dendritic cells. Scientific reports, 5(1), 1–10. https://doi.org/10.1038/srep16148
Nazlioglu, S., Gormus, N. A., Soytas, U. (2016). Oil prices and real estate investment trusts (REITs): Gradual-shift causality and volatility transmission analysis. Energy economics, 60(C), 168–175. https://doi.org/10.1016/j.eneco.2016.09.009
Nepal, P., Khanal, N. R., Zhang, Y., et al. (2020). Land use policies in Nepal: An overview. Land Degradation & Development, 31(16), 2203–2212. https://doi.org/10.1002/ldr.3621
Pasten, C., Santamarina, J. C. (2012). Energy and quality of life. Energy Policy, 49, 468–476. https://doi.org/10.1016/j.enpol.2012.06.051
Pollock, A. (2008). The climate change challenge: Implications for the tourism industry. The Icarus Foundation.
Pratt, L., Rivera, L., Bien, A., Peeters, P. M. (2011). Tourism: Investing in energy and resource efficiency. In: Fulai, S., Sukhdev, P. (editors). Towards a green economy: Pathways to sustainable development and poverty eradication. UNEP. pp. 413–451.
Ranis, G., Stewart, F., Ramirez, A. (2000). Economic growth and human development. World development, 28(2), 197–219. https://doi.org/10.1016/S0305-750X(99)00131-X
Rawls, J. (2001). Justice as fairness: A restatement. In: Kelly, E. I. (editor). Harvard University Press.
Revelle, W., Humphreys, M. S., Simon, L., Gilliland, K. (1980). The interactive effect of personality, time of day, and caffeine: A test of the arousal model. Journal of Experimental Psychology: General, 109(1), 1–31. https://doi.org/10.1037//0096-3445.109.1.1
Ridderstaat, J., Croes, R., Nijkamp, P. (2016). The tourism development–quality of life nexus in a small island destination. Journal of Travel Research, 55(1), 79–94. https://doi.org/10.1177/0047287514532372
Ridderstaat, J., Oduber, M., Croes, R., et al. (2014). Impacts of seasonal patterns of climate on recurrent fluctuations in tourism demand: Evidence from Aruba. Tourism Management, 41, 245–256. https://doi.org/10.1016/j.tourman.2013.09.005
Sarkodie, S. A., Strezov, V. (2019). A review on environmental Kuznets curve hypothesis using bibliometric and meta-analysis. Science of the total environment, 649, 128–145. https://doi.org/10.1016/j.scitotenv.2018.08.276
Sarkodie, S. A., Adams, S., Owusu, P. A., et al. (2020). Mitigating degradation and emissions in China: The role of environmental sustainability, human capital and renewable energy. Science of the Total Environment, 719(11), 137530. https://doi.org/10.1016/j.scitotenv.2020.137530
Sen, A., Dreze, J. (1999). The Amartya Sen and Jean Drèze omnibus: Comprising poverty and famines; Hunger and public action; and India: Economic development and social opportunity. Oxford University Press.
Seyfi, S., Hall, C. M. (2020). Sanctions and tourism: Effects, complexities and research. Tourism Geographies, 22(4–5), 749–767. https://doi.org/10.1080/14616688.2019.1663911
Sirgy, M. J., Kruger, P. S., Lee, D. J., Yu, G. B. (2011). How does a travel trip affect tourists’ life satisfaction? Journal of Travel research, 50(3), 261–275. https://doi.org/10.1177/0047287510362784
Solarin, S. A. (2019). Modelling the relationship between financing by Islamic banking system and environmental quality: evidence from bootstrap autoregressive distributive lag with Fourier terms. Quality & quantity, 53(6), 2867–2884. https://doi.org/10.1007/s11135-019-00904-7
Stiglitz, J., Sen, A., Fitoussi, J.-P. (2009). The measurement of economic performance and social progress revisited: Reflections and overview. Available online: https://sciencespo.hal.science/hal-01069384 (accessed on 30 July 2024).
Tang, Q., Bluestone, J. A. (2006). Regulatory T‐cell physiology and application to treat autoimmunity. Immunological reviews, 212(1), 217–237. https://doi.org/10.1111/j.0105-2896.2006.00421.x
Tang, Z., Kotov, N. A., Giersig, M. (2002). Spontaneous organization of single CdTe nanoparticles into luminescent nanowires. Science, 297(5579), 237–240. https://doi.org/10.1126/science.1072086
Toda, H. Y., Yamamoto, T. (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of econometrics, 66(1–2), 225–250. https://doi.org/10.1016/0304-4076(94)01616-8
United Nations Environment Programme. (2011). UNEP 2011 annual report. Available online: https://www.unep.org/resources/annual-report/unep-2011-annual-report (accessed on 30 July 2024).
Uysal, M., Perdue, R., Sirgy, M. J. (2012). Handbook of tourism and quality-of-life research: Enhancing the lives of tourists and residents of host communities. Springer. https://doi.org/10.1007/978-94-007-2288-0
Vakulchuk, R., Overland, I., Suryadi, B. (2023). ASEAN’s energy transition: How to attract more investment in renewable energy. Energy, Ecology and Environment, 8(1), 1–16. https://doi.org/10.1007/s40974-022-00261-6
World Tourism Organization. (2014). Annual report 2014. Available online: https://www.unwto.org/archive/global/annualreport2014 (accessed on 30 July 2024).
Yap, G., Saha, S. (2013). Do political instability, terrorism, and corruption have deterring effects on tourism development even in the presence of UNESCO heritage? A cross-country panel estimate. Tourism Analysis, 18(5), 587–599. https://doi.org/10.3727/108354213X13782245307911
Youn, H., Lee, K., Lee, S. (2018). Effects of corporate social responsibility on employees in the casino industry. Tourism management, 68, 328–335. https://doi.org/10.1016/j.tourman.2018.03.018
Yu, C. P., Chancellor, H. C., Cole, S. T. (2011). Measuring residents’ attitudes toward sustainable tourism: A reexamination of the sustainable tourism attitude scale. Journal of travel research, 50(1), 57–63. https://doi.org/10.1177/0047287509353189
Zeren, F., Kızılkaya, F. (2021). A new combination of Fourier unit root tests: A PPP application for fragile economies. Applied Economics Letters, 28(19), 1707–1711. https://doi.org/10.1080/13504851.2020.1851647
DOI: https://doi.org/10.24294/jipd8538
Refbacks
- There are currently no refbacks.
Copyright (c) 2024 Achmad Suhaely, Nuraeni Kadir, Abdul Rahman Kadir, Mursalim Nohong, Sabbar Dahham Sabbar
License URL: https://creativecommons.org/licenses/by/4.0/
This site is licensed under a Creative Commons Attribution 4.0 International License.