Economic Impact of Vietnam’s Tourism on Australia: An Econometric Study
Vietnam tourism arrivals to Australia have been regarded as playing an important role in Australia’s growth in
recent years. In spite of the fact that this activity is, in addition to trade and foreign direct investment, a principal cause of
growth in the modern economic integration and globalisation theory, tourism studies from this theory’s structural
framework, while highly appropriate and with useful insights, have hardly been undertaken. The paper proposes to fill the
gap by using a new approach to developing an endogenous model of simultaneous growth and tourism determination
equations where trade, foreign direct investment and tourism are main contributing factors of growth. In addition,
Ironmonger-Lancaster new consumer demand theory determines tourism, and ‘economic conditionality’ simultaneously
influencing growth and tourism in the sense of Johansen is recognised and incorporated. The model is then applied to
Australian and Vietnamese data for the post-Japanese tourist boom period of 1992-2015 to provide substantive findings on
Vietnam’s tourism determination and its contribution to Australia. Major regional policy implications are developed for use
by government tourism planners and policy-makers.
Keywords - Vietnam’s Tourism, Australia’s Growth, Economic Integration Theory, Endogenous Growth, Economic
Modelling and Forecasts, Economic and Tourism Policy.
JEL - C54, F15, F62, Z32, Z38