preprints.org > social sciences > accounting > doi: 10.20944/preprints202108.0172.v1

Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Version 1 : Received: 5 August 2021 / Approved: 6 August 2021 / Online: 6 August 2021 (18:03:00 CEST)

The main aim of sustainable development is to ensure an intelligible and long-lasting balance between the economy, society, and the environment. Sustainable tourism could only be successful if the inter-relationships between all three dimensions are accepted. In the limited number of research analyses, the focus of the research is on competition between tourist countries and destinations. This study has used Game theory to analyze the competition applies time-series data in selected neighboring countries measure of a VAR-based spillover index, developed by [1] to investigate the time-varying relationship between tourism and Gross Domestic Product. Each country analyzed Vector Error Correction (VEC) and Granger analysis to explore the causal short and long-term tourism and use a sample that spans from 1997 to 2019. From the main results of Cholesky, the total spillover index is 59.0% between Russia and Mongolia which suggests a moderate interdependence among the four variables. Findings indicate that neither China nor Mongolia have a short-run influence on tourism development. China's inbound tourism is affected in the long run by Mongolia's inbound tourism but not vice versa can be explained by the fact that the number of tourists visiting Mongolia would include China in their travels.

Inbound Tourism; Spillover Effect; Game Theory; Sustainable Development; Neighboring Countries, Mongolia