The exposure of the US tourism subsector stocks to global volatility and uncertainty factors

Dlawar Mahdi Hadi, Muhammad Abubakr Naeem, Sitara Karim

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)


In the face of uncertain circumstances and volatilities across tourism stocks, the current study attempts to investigate the connectedness of US tourism subsectors using time-varying vector autoregressions (TVP-VAR) technique for the period spanning 1 August 2008–31 August 2021. Moreover, we examined the influence of various financial and economic indicators to observe their impact on the connectedness of US tourism subsectors. Further, we employed Diebold and Yilmaz ([2012]. Better to give than to receive: Predictive directional measurement of volatility spillovers. International Journal of Forecasting, 28(1), 57–66) connectedness approach to justify the robustness of our results. We find that hotels, transportation, and recreational are net transmitters of spillovers to the remaining US subsectors. We reported multiple time-varying attributes where the connectedness of US tourism subsectors was remarkably higher. In addition, the regression results reveal a positive and significant impact of financial and economic uncertainties on the connectedness. Finally, our findings were robust to the methodology employed, which substantially justified our estimator. We proposed numerous useful implications for policymakers, US government, tourism industry, investors, market players, and portfolio managers to benefit from the findings obtained.

Original languageEnglish
Pages (from-to)603-616
Number of pages14
JournalCurrent Issues in Tourism
Issue number4
Publication statusPublished - 2023


  • Connectedness
  • financial and economic indicators
  • uncertainty
  • US tourism subsectors

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Tourism, Leisure and Hospitality Management


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