EFFECTS OF THE CONSUMER PRICE INDEX ON THE VOLATILITY OF FOREIGN VISITORS TO VIETNAM

Received: 11-08-2014

Accepted: 25-11-2015

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Issue: Vol. 13 No. 1 (2015)

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KINH TẾ XÃ HỘI VÀ PHÁT TRIỂN NÔNG THÔN

How to Cite:

Giam, D., Tuan, T., & Ha, L. (2024). EFFECTS OF THE CONSUMER PRICE INDEX ON THE VOLATILITY OF FOREIGN VISITORS TO VIETNAM. Vietnam Journal of Agricultural Sciences, 13(1), 143–149. http://testtapchi.vnua.edu.vn/index.php/vjasvn/article/view/1515

EFFECTS OF THE CONSUMER PRICE INDEX ON THE VOLATILITY OF FOREIGN VISITORS TO VIETNAM

Do Quang Giam (*) 1, 2 , Tran Thi Tuan 3 , Le Thanh Ha 2

  • 1 Khoa Kế toán và Quản trị Kinh doanh, Học viện Nông nghiệp Việt Nam
  • 2 Faculty of Accounting and Business Management, Vietnam National University of Agriculture
  • 3 Advanced Program of Business Management, Vietnam National University of Agriculture

    • Abstract


    Vietnam tourism is one of the key economic sectors that has contributed a considerable share (4.13%) to GDP of the country in 2012. With many beautiful landscapes, diverse cultures, long history, etc. Vietnam has been rated as a fully potential destination for foreign visitors. However, high inflation in the host country resulted in expensive tourism expenses may affect the volatility of foreign visitors to Vietnam. The paper examined the effects of the 1, 2, 3, 4, 5 and 6 month lagged consumer price indices (CPI) as exogenous (X) variableson the volatility of foreign visitors to Vietnam, using the GARCH(1,1)-X models. The results showed that the volatility of foreign visitors to Vietnam is characterized by a heteroscedastic process and the volatility is positively influenced by the lagged CPI. The findings are important implications for policy makers, tourism enterprises and investors in Vietnam tourism industry.

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