Economic and Financial Review


Research Department, Central Bank of Nigeria.


Tourism, Bounds testing, Autoregressive Distributed Lag (ARDL), Error Correction Term (ECM), Nigeria.


This study empirically examines aggregate tourism demand function for Nigeria using the time series data for the period 1995:QJ-2006:Q4. The total tourist arrivals into Nigeria are related to world income, relative prices and transportation cost. Bounds testing cointegration procedure proposed by Pesaran et al. (2001) is employed to compute the short and long-run elasticities of income, price, political stability and transportation cost variables and the CUSUM and CUSUMSQ is implemented for stability tests on the aggregate tourism demand function. The empirical results indicate that income, transportation cost, political stability and relative prices are the variables explaining the total tourist arrivals to Nigeria and a stable tourism demand function exists.





Recommended Citation

Bankole, A. S., & Babatunde, M. A. (2009). A bound testing analysis of tourism demand in Nigeria. Economic and Financial Review, 47(3), 1–28.



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