Department of Global Business
College of Business Administration
Changwon National University
Gyeongnam, South Korea
The Effect of Exchange Rate and Oil Price on Volatility of Inbound and Outbound Tourism Demand
This study examined the volatility of inbound and outbound tourism demand and correlation between them using DCC(dynamic conditional correlation) – MGARCH (multivariate generalized autoregressive conditional heteroskedasticity) model. In addition, we analyze the effect of exchange rate, oil price on the volatility. The inbound and outbound tourism demand change rates have volatility, and there was interdependence between volatility. Oil prices and/or exchange rates affected volatility.