The contagion effect of COVID-19-induced uncertainty on US tourism sector: Evidence from time-varying granger causality test
- 26 March 2022
- journal article
- research article
- Published by SAGE Publications in Tourism Economics
- Vol. 29 (4), 906-928
- https://doi.org/10.1177/13548166221077633
Abstract
This study investigates the effect of COVID-19-induced uncertainty on the overall stock market and the stock performance of the tourism and hospitality industry and its subsectors utilizing a novel time-varying robust Granger causality test. The results show that the COVID-19 pandemic-induced uncertainty has an adverse impact on the overall economy, tourism and hospitality industry, and subsectors of tourism and hospitality. However, the impact of COVID-19 pandemic-induced uncertainty is more significant in the tourism and hospitality industry and its subsectors. In particular, hotels sector has experienced the largest impact from the COVID-19 pandemic, followed by restaurants and airline sectors, respectively. Research and practical implications are discussed. JEL Classification: C1, C5, F2, G11, G17, G41Keywords
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