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Are tourist arrivals stationary? Evidence from Laos

ABSTRACT The purpose of this study is to analyse whether shocks to tourist arrivals in Laos are temporary or permanent. The analysation uses a panel unit root test. Our empirical results provide significant evidence that the Non-ASEAN tourist arrivals is a non-stationary process, whereas tourist arrivals from Asia and Pacific, ASEAN, and Europe is a stationary process. This finding indicates that shocks to the Non-ASEAN tourist arrivals have permanent effects, but the shocks to the tourist arrivals from Asia and Pacific, ASEAN, and Europe have temporary effects.