Article,
The contagion effect of COVID-19-induced uncertainty on US tourism sector: Evidence from time-varying granger causality test
Contributors
Cepni O.
0000-0003-0711-8880
[1]
[2]
Dogru T.
0000-0002-1149-0805
(Corresponding author)
[3]
Ozdemir O.
0000-0001-8734-9915
[4]
Affiliations
- [1] Central Bank of the Republic of Turkey [NORA names: Turkey; Asia, Middle East; OECD];
- [2] Copenhagen Business School [NORA names: CBS Copenhagen Business School; University; Denmark; Europe, EU; Nordic; OECD];
- [3] Florida State University [NORA names: United States; America, North; OECD];
- [4] University of Nevada [NORA names: United States; America, North; OECD]
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, G41
