How Interaction Tourism Sector and Transport Infrastructure Toward National Income in Malaysia?

Abstract

This study is aimed to identify the relationship between tourism, transport infrastructure and income in Malaysia. This study examines how one is correlated to another. Malaysia has been selected for this study because Malaysia is one of the countries that is doing well in the tourism industry, and it has all the transport infrastructure. Tourism revenue is one of the main sources of income in Malaysia. This study examines how tourism and transport infrastructure affects the Malaysia’s income of directly and the importance of tourism and transport infrastructure towards the growth of the income in Malaysia. Secondary data is used in this study to measure and test by several econometrics models using the EViews version 12 SV software. This study uses time-series data from 1991 to 2020. Augmented Dickey-Fuller (ADF) test, Phillips-Perron (PP) test, Johansen Cointegration test and VECM Granger Causality test have been fully used to meet the objectives of the study. From this study, it shows that tourism, transport infrastructure and income have positive relationship. Meanwhile, the tourism revenue can influence the income of the country and the railway passengers.