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Relationship between Tourism Arrivals with Macroeconomics Factors in<br />

Malaysia<br />

Wan Nur Hidayah binti Wan Abdul Manan<br />

Supervisor: Dr Nor Ermawati Binti Hussain<br />

Bachelor of Economics (Natural Resources)<br />

School of Sosial and Economic Development<br />

This study is to investigate the relationship between tourist arrivals and macroeconomic<br />

factors in Malaysia. By using time series data from 1990 to 2015, the unit root test, cointegration<br />

test, vector error correction model (VECM) test and causality test were<br />

conducted. We find that there is a long-term relationship between tourist arrivals with at<br />

least one variable. For causality test, Tourist arrivals are the cause of economic growth<br />

while economic growth is a cause for employment.<br />

1480 | UMT UNDERGRADUATE RESEARCH DAY 2018

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