The role of tourism in service sector employment: Do market capital, financial development and trade also play a role?

Khanal, Avishek ORCID: https://orcid.org/0000-0003-1470-0297 and Rahman, Mohammad Mafizur ORCID: https://orcid.org/0000-0002-7950-1961 and Khanam, Rasheda ORCID: https://orcid.org/0000-0003-1130-2357 and Velayutham, Eswaran ORCID: https://orcid.org/0000-0003-2492-5668 (2022) The role of tourism in service sector employment: Do market capital, financial development and trade also play a role? PLoS One, 17 (8):e0270772. pp. 1-18.

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Abstract

Workers’ living standards have recently deteriorated in the service sector throughout the world, although a few decades ago, service was among the fastest growing sectors in industrialised nations. However, in recent years, in service sectors tourism especially has been drying up. This paper examines the symmetric and asymmetric effects of tourism, market capital, financial development, and trade on service sector employment in Australia from the period 1991–2019. The results of the cointegration tests, notably the ARDL and NARDL bound tests, reveal that the variables are related in the long run. The positive effect of tourist arrival on service sector employment in Australia is confirmed by long-run estimates from both ARDL and NARDL approaches. Similarly, both approaches also confirm the long-run positive relation of financial development. However, while ARDL shows long-run negative and positive associations of market capital and trade, respectively, the opposite is found in the case of the NARDL approach. As a result, policy proposals like planning and initiating tools for ensuring consistent international arrivals and easing of entry requirements have been recommended by this study to assist Australia in enhancing service sector employment, thus promoting economic development.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Date Deposited: 09 Aug 2022 03:55
Last Modified: 28 Sep 2022 04:50
Uncontrolled Keywords: tourism; workers; living standards; service sector employment; Australia
Fields of Research (2020): 38 ECONOMICS > 3801 Applied economics > 380199 Applied economics not elsewhere classified
Identification Number or DOI: https://doi.org/10.1371/journal.pone.0270772
URI: http://eprints.usq.edu.au/id/eprint/50820

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