Assessing the impact of tourism on sustainable economic development in Indonesia: A comprehensive analysis using the Fourier bootstrap autoregressive distributed lag approach

Achmad Suhaely ,Nuraeni Kadir ,Abdul Rahman Kadir ,Mursalim Nohong ,Sabbar Dahham Sabbar

doi:10.24294/jipd8538

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Assessing the impact of tourism on sustainable economic development in Indonesia: A comprehensive analysis using the Fourier bootstrap autoregressive distributed lag approach

Achmad Suhaely

Nuraeni Kadir

Abdul Rahman Kadir

Mursalim Nohong

Sabbar Dahham Sabbar

Journal of Infrastructure Policy and Development 2024, 8(14), 8538; https://doi.org/10.24294/jipd8538

Submitted：12 Aug 2024

Accepted：19 Sept 2024

Published：25 Nov 2024

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Abstract

This research analyzes the relationship between political stability, renewable energy utilization, economic progress, and tourism in Indonesia from 1990 to 2020. We employ advanced econometric techniques, including the Fourier Bootstrap Autoregressive Distributed Lag (ARDL) approach and Fourier Toda-Yamamoto causality testing, to ensure the robustness of our results while accounting for smooth structural changes in the data. The analysis uncovers a long-term equilibrium relationship between tourism and its fundamental determinants. Our research reveals significant positive impacts of political stability and renewable energy consumption on tourism in Indonesia. A stable political environment creates a favorable climate for tourism development, instilling confidence in both domestic and international tourists. Promoting renewable energy usage aligns with sustainable tourism practices, attracting environmentally conscious travelers. Furthermore, our findings demonstrate a bi-directional causal relationship between these variables over time. Changes in political stability, renewable energy consumption, and economic growth profoundly influence the tourism sector, while the growth of tourism itself can also stimulate economic development and foster political stability. Our findings underscore the need for environmentally sustainable and politically stable tourism policies. Indonesia’s tourism sector can grow sustainably with renewable energy and stability. Policymakers can develop strategies with tourism, political stability, renewable energy, and economic prosperity in mind.

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References

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