The Impact of the volatility exchange rate volatility in Cape Verde Cabo Verde tourism flows
Name: JANISIA HELENE LIMA MOTA
Publication date: 31/05/2019
Advisor:
Name |
Role |
|---|---|
| GUTEMBERG HESPANHA BRASIL | Advisor * |
Examining board:
| Name |
Role |
|---|---|
| EDNILSON SILVA FELIPE | Internal Examiner * |
| GUTEMBERG HESPANHA BRASIL | Advisor * |
Summary: Since the decade of 2000 tourism has been establishing itself in one of the main activities for the economic development of Cape Verde. The growth of tourism is evidenced in the data presented in the present work. On the other hand, it is important to study the effect of usual variables on tourism; in particular, to analyze the effect of exchange rate volatility on the tourist flow of the country, based on the availability of quarterly data between 2007 and 2018. Three different measures of exchange rate volatility were analyzed. In addition to the measures of volatility were included in the model, the variable relative prices, measured by the ratio between the Cape Verde consumer price index and the rest of the world price index, the GDP per capita variable, measured in terms of power parity purchase and weighted by
the number of arrivals of tourists by country of origin, divided by the total number of tourists arriving in Cape Verde, as well as variables representing seasonal trend and seasonality. Using the Autoregressive Distributed Lags Model (ARDL), it was concluded that in the case of Cape Verde this variable behaves differently from the one usually described in the literature, because the exchange rate volatility presented a positive relation with the tourist flow , although not statistically significant, which can be explained by the composition of the markets that emit tourists to Cape Verde, mostly made up of European countries that use the Euro currency, the currency to which the Cape Verde Escudo is attached.
