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Tourism and Poverty Reduction in Mexico: An ARDL Cointegration Approach

Department of Economics, Universidad de Monterrey, San Pedro Garza García 66238, Mexico
Sustainability 2019, 11(3), 845; https://doi.org/10.3390/su11030845
Received: 5 January 2019 / Revised: 31 January 2019 / Accepted: 3 February 2019 / Published: 6 February 2019
(This article belongs to the Special Issue Employment and Income Growth from Sustainable Tourism)
The objective of this paper was to investigate, with respect to the case of Mexico, the relationship between international tourism and the magnitude of poverty during the period of 1980–2017, through the use of an autoregressive distributed lags (ARDL) cointegration model with a structural break. The econometric results obtained in this paper indicate that there is a long-term relationship between international tourism and the reduction of poverty. It was found that for every 1% increase in international tourism, household consumption per capita increases 0.46% (and, therefore, poverty decreases). In the short term, it was found that a 1% increase in international tourism leads to a 0.11% increase in household consumption per capita (a decrease in poverty). The coefficient of the error correction model indicates that 23.9% of any movement into disequilibrium is corrected within one year. To corroborate these results, a Toda–Yamamoto Granger causality test was carried out, indicating a unidirectional causality relationship from international tourism towards the reduction of poverty. View Full-Text
Keywords: Mexico; poverty reduction; tourism; ARDL model; cointegration; Granger causality Mexico; poverty reduction; tourism; ARDL model; cointegration; Granger causality
MDPI and ACS Style

Garza-Rodriguez, J. Tourism and Poverty Reduction in Mexico: An ARDL Cointegration Approach. Sustainability 2019, 11, 845. https://doi.org/10.3390/su11030845

AMA Style

Garza-Rodriguez J. Tourism and Poverty Reduction in Mexico: An ARDL Cointegration Approach. Sustainability. 2019; 11(3):845. https://doi.org/10.3390/su11030845

Chicago/Turabian Style

Garza-Rodriguez, Jorge. 2019. "Tourism and Poverty Reduction in Mexico: An ARDL Cointegration Approach" Sustainability 11, no. 3: 845. https://doi.org/10.3390/su11030845

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