Effects of Exchange Rate Volatility on Tourist Flows into Iceland

G. Agiomirgianakis, Dimitris Serenis, N. Tsounis

Research output: Contribution to journalArticle

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Abstract

This paper examines the effect of Exchange Rate Volatility (ERV) for Iceland, on tourist arrivals exports during the period of first quarter of 1990 to fourth quarter of 2014. It is claimed by some researchers that exchange rate volatility causes a reduction on tourist arrivals. Empirical researchers often utilize the standard deviation of the moving average of the logarithm of the exchange rate as a measure of exchange rate fluctuation. In this study, a new measure for measuring volatility is proposed. The empirical methodology used relies upon the theory of cointegration, error correction representation of the exchange rate volatility measures using the Autoregressive Distributed Lags (ARDL) modeling to cointegration. Overall, our findings suggest that there is a negative effect of volatility to tourists’ arrivals for Iceland.
Original languageEnglish
Pages (from-to)25-34
JournalProcedia Economics and Finance
Volume24
DOIs
Publication statusPublished - 9 Oct 2015

Fingerprint

Tourists
Exchange rate volatility
Iceland
Cointegration
Standard deviation
Methodology
Error correction
Modeling
Distributed lag
Exchange rates
Exchange rate fluctuations
Moving average

Bibliographical note

The full text is also available from: http://dx.doi.org/10.1016/S2212-5671(15)00608-5
Under a Creative Commons license

Keywords

  • Exchange Rate Volatility
  • tourism
  • Iceland
  • ARDL

Cite this

Effects of Exchange Rate Volatility on Tourist Flows into Iceland. / Agiomirgianakis, G.; Serenis, Dimitris; Tsounis, N.

In: Procedia Economics and Finance, Vol. 24, 09.10.2015, p. 25-34.

Research output: Contribution to journalArticle

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