The effect of economic policy uncertainty on BRIC tourism

ABSTRACT

This study examines the effects of economic policy uncertainty (EPU) and tourism in Brazil, Russia, India and China (BRIC). It used a three-dimensional wavelet technique based on Granger causality analysis to investigate the relationship between EPU and tourism activities using the annual data between 1995 and 2018. The results show that the uncertainty about its economic policies will not only affect macroeconomic variables but also tourism. The EPU has short-run implications, as well as short-run, mid-run and long-run effects on international tourist arrivals. It can be recommended that the national security of the government and peace protocols be maintained by the government. Otherwise, the fall in tourism demand could impede the economic growth in the BRIC countries in the long-run.

KEYWORDS:

• BRIC tourism activities
• economic policy uncertainty
• wavelet analysis
• time domains
• frequency domains

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Tsung-Pao Wu

Tsung-Pao Wu is a Professor at School of Accounting and Finance in Beijing Institute of Technology, Zhuhai, China. He has received his Ph.D. in finance and published his works in Tourism Recreation Research, Tourism Review, Journal of Policy Research in Tourism, Leisure and Events, the Singapore Economic Review, Journal of Applied Economics and Business Research, Journal of Sustainable Tourism, Current Issues in Tourism, Journal of China Tourism Research, Journal of Hospitality and Tourism Management, Journal of Travel Research, Applied Economics, International Journal of Tourism Research, Tourism and Hospitality Research, Tourism Analysis, Applied Economics, Applied Economics Letters, Applied Financial Economics, Global Economic Review, Romanian Journal of Economic Forecasting, Empirical Economics, Macroeconomics and Finance in Emerging Market Economies, Economic Modelling, Tourism Planning and Development, Journal of Real Estate Portfolio Management, International Journal of Economic Policy in Emerging Economies, Japan and the World Economy, and International Economic Journal, among others. His research interest focuses on wavelet analysis and tourism economics.

Hung-Che Wu

Hung-Che Wu is an Independent Researcher. He has received his PhD in marketing and economics and published his works in Tourism Recreation Research, Journal of Hospitality, Leisure, Sport & Tourism Education, International Journal of Hospitality Management, Asian Journal of Technology Innovation, Journal of Policy Research in Tourism, Leisure and Events, Scandinavian Journal of Hospitality and Tourism, Journal of Tourism and Cultural Change, Journal of Sustainable Tourism, Journal of Applied Economics and Business Research, Journal of Retailing and Consumer Services, Journal of Vacation Marketing, Current Issues in Tourism, International Journal of Bank Marketing, Journal of International Food & Agribusiness Marketing, Marketing Intelligence & Planning, Journal of Destination Marketing and Management, Tourism Management, Journal of Environmental Planning and Management, Journal of the Knowledge Economy, Industrial Management & Data System, Journal of Organizational Change Management, Innovative Marketing, Journal of Travel Research, Tourism Review International, Tourism Review, Tourism Analysis, International Journal of Economics and Financial Issues, Tourism Planning and Development, Journal of Tourism, Hospitality & Culinary Arts, Journal of Quality Assurance in Hospitality & Tourism, Journal of Convention and Event Tourism, Asia Pacific Journal of Marketing and Logistics, Event Management, Journal of Foodservice Business Research, Journal of Hospitality Marketing & Management, Asia Pacific Journal of Tourism Research, International Journal of Tourism Research, International Journal of Tourism Sciences, British Food Journal, Multimedia Tools and Applications, International Journal of Contemporary Hospitality Management, International Journal of Tourism & Hospitality Administration, Journal of Hospitality and Tourism Management, International Journal of Economics and Financial Issues, Journal of China Tourism Research, Tourism and Hospitality Research, and Journal of Hospitality & Tourism Research, among others. He is currently working as an editor-in-chief for Probe – Business Management and International Journal of Management Research and Economics, a reviewing editor for Journal of Physical Education and Sport Management, Heliyon Business and Economics, Journal of Hospitality Management and Tourism, and Cogent Business & Management, and the editorial board members for Global Journal of Management and Business, International Journal of Research in Business and Management, International Journal of Humanities and Social Science Review, Journal of Tourism & Sports Management, Journal of Media & Management, Journal of Business Administration Research, SCIREA Journal of Sociology, International Journal of Tourism & Hotel Business Management, New Construction Technology, JResLit Journal of Science and Technology, International Journal of Tourism & Hotel Business Management, International Journal of Business and Systems Research, Probe - Environmental and Waste Management, Probe - Business Management (OA Journal), Environments (OA Journal), Sensors (OA Journal), Foods (OA Journal), Composite Materials Research, Environment and Social Psychology, Sustainability (OA Journal), Cognitive Neuroscience Journal, Tourism Analysis, International Business Research, Journal of Tourism & Hospitality, International Journal of Business and Management, International Journal of Marketing Studies, Journal of Hospitality and Tourism Research, Science Journal of Business and Management, and Business and Management Studies. His research interests include green marketing, experiential marketing, tourism management, service quality, customer satisfaction, tourism economics and consumer behaviour.

Chi-Hui Wang

Chi-Hui Wang is an Associate Professor at School of Accounting and Finance in Beijing Institute of Technology, Zhuhai, China. She has received her Ph.D. in Finance and published her works in the leading international journals.

Haotong Wu

Haotong Wu is a master student at School of Social and Political Science in the University of Edinburgh, Edinburg, Scotland, UK. His research areas focus on tourism economics, wavelet analysis and financial analysis.

Yu-Yu Wu

Yu-Yu Wu is a Postdoctoral Fellow in the University of Macau, Macau. Her research areas focus on tourism economics, wavelet analysis and financial analysis.