+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
Russian version 

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Economic Analysis: Theory and Practice
 

Financial contagion of the Thai hospitality industry during the global energy crisis

Vol. 23, Iss. 3, MARCH 2024

Received: 19 February 2024

Received in revised form: 4 March 2024

Accepted: 13 March 2024

Available online: 28 March 2024

Subject Heading: ANALYSIS OF FINANCIAL CAPITAL

JEL Classification: G19

Pages: 555577

https://doi.org/10.24891/ea.23.3.555

Marina V. EFREMOVA National Research Lobachevsky State University of Nizhny Novgorod (UNN), Nizhny Novgorod, Russian Federation
efremovamv@iee.unn.ru

https://orcid.org/0000-0002-6985-2696

Yuliya S. KLYUEVA Institute of Food Technology and Design Branch of Nizhny Novgorod State University of Engineering and Economics (NGIEU), Nizhny Novgorod, Russian Federation
juliya_klyueva@mail.ru

https://orcid.org/0000-0002-7464-1121

Andrei M. TEREKHOV Russian State University of Justice (RSUJ), Moscow, Russian Federation
terehoff.t@yandex.ru

https://orcid.org/0000-0002-2356-4533

Tat'yana M. VOROB'EVA Nizhny Novgorod State Agrotechnological University, Nizhny Novgorod, Russian Federation
tatyana.expert.vorobeva@mail.ru

https://orcid.org/0009-0005-6676-2272

Subject. The article addresses the financial contagion of the hospitality industry on the case of Thailand.
Objectives. The study aims at fixing the financial contagion from the oil and gas markets of shares of Thai hotel companies to assess the impact of the energy crisis of 20212022 on the hospitality sector.
Methods. We employ general scientific research methods.
Results. The Thai energy market analysis demonstrated significant dependence on fossil fuels, which occupy more than half of the total volume in the structure of energy generation. The paper highlights a technique of fixing the financial contagion in relation to the stock market of hospitality enterprises, provides data sampling on quotations of shares of Thai tourism enterprises, data on oil and gas futures prices. Further, the initial data were converted into a series of logarithmic returns. At the next stage, we performed a graphical analysis of the dynamics of volatility in the profitability of prices of futures contracts for oil and gas. Based on the series of logarithmic returns of pairs of "transmitterreceiver" variables, we constructed a DCC-GARCH model. We recorded financial contagion from the oil and gas markets and identified the causes of this process, i.e. the dependence of the tourism industry and hospitality enterprises on energy supplies, political situation in the region, sensitivity of the industry to economic crises. Also we note the instability of energy futures quotations during the crisis, which has a direct impact on the cost of tourist trips.
Conclusions. The study of the mechanisms of transmission of financial contagion is an important area of anti-crisis planning of government measures to minimize the risks of economic losses.

Keywords: hospitality industry, oil and gas market, tourism industry, financial contagion, energy crisis

References:

  1. Balli F., Uddin G.S., Shahzad S.J.H. Geopolitical risk and tourism demand in emerging economies. Tourism Economics, 2019, vol. 25, iss. 6, pp. 9971005. URL: Link
  2. Martínez-García M.Á., Ramos-Carvajal C., Cámara Á. Consequences of the energy measures derived from the war in Ukraine on the level of prices of EU countries. Resources Policy, 2023, vol. 86, part B, no. 104114. URL: Link
  3. Kayani U.N., Hassan M.K., Moussa F., Hossain G.F. Oil in crisis: What can we learn. The Journal of Economic Asymmetries, 2023, vol. 28, no. e00339. URL: Link
  4. Faruk Balli, Mabruk Billah, Iftekhar Chowdhury. Impact of the RussiaUkraine war on hospitality equity markets. Tourism Economics, 2022, vol. 29, iss. 8. URL: Link
  5. Boungou W., Yatié A. The impact of the UkraineRussia war on world stock market returns. Economics Letters, 2022, vol. 215, no. 110516. URL: Link
  6. Dharen Kumar Pandey, Rahul Kumar. RussiaUkraine war and the global tourism sector: A 13-day tale. Current Issues in Tourism, 2023, vol. 26, iss. 5, pp. 692700. URL: Link
  7. Dimic N., Orlov V., Piljak V. The political risk factor in emerging, frontier, and developed stock markets. Finance Research Letters, 2015, vol. 15, pp. 239245. URL: Link
  8. Burcu Kapar, Buigut S. Effect of Qatar diplomatic and economic isolation on Qatar stock market volatility: an event study approach. Applied Economics, 2020, vol. 52, iss. 55, pp. 60226030. URL: Link
  9. Berkman H., Jacobsen B., Lee J.B. Time-varying rare disaster risk and stock returns. Journal of Financial Economics, 2011, vol. 101, iss. 2, pp. 313332. URL: Link
  10. Lehkonen H., Heimonen K. Democracy, political risks and stock market performance. Journal of International Money and Finance, 2015, vol. 59, pp. 7799. URL: Link
  11. Shaker Ahmed, Mostafa M. Hasan, Md Rajib Kamal. RussiaUkraine crisis: The effects on the European stock market. European Financial Management, 2023, vol. 29, iss. 4, pp. 10781118. URL: Link
  12. Akhtaruzzaman Md., Boubaker S., Sensoy A. Financial contagion during COVID-19 crisis. Finance Research Letters, Forthcoming, 2020. URL: Link
  13. Reinhart C., Kaminsky G., Vegh C. The Unholy Trinity of Financial Contagion. Journal of Economic Perspectives, 2003, vol. 17, iss. 4, pp. 5174. URL: Link
  14. Md Rajib Kamal, Shaker Ahmed, Mostafa Monzur Hasan. The impact of the Russia-Ukraine crisis on the stock market: Evidence from Australia. Pacific-Basin Finance Journal, 2023, vol. 79, no. 102036. URL: Link
  15. Jacobs H. Market maturity and mispricing. Journal of Financial Economics, 2016, vol. 122, iss. 2, pp. 270287. URL: Link
  16. Boubaker S., Goodell J.W., Pandey D.K., Kumari V. Heterogeneous impacts of wars on global equity markets: Evidence from the invasion of Ukraine. Finance Research Letters, 2022, vol. 48, no. 102934. URL: Link
  17. Yousaf I., Patel R., Yarovaya L. The reaction of G20+ stock markets to the RussiaUkraine conflict black-swan event: Evidence from event study approach. Journal of Behavioral and Experimental Finance, 2022, vol. 35, no. 100723. URL: Link
  18. Abbassi W., Kumari V., Pandey D.K. What makes firms vulnerable to the RussiaUkraine crisis? The Journal of Risk Finance, 2023, vol. 24, iss. 1, pp. 2439. URL: Link
  19. Aliu F., Mulaj I., Hašková S. Consequences of the RussiaUkraine war: Evidence from DAX, ATX, and FTSEMIB. Studies in Economics and Finance, 2023, vol. 40, iss. 3, pp. 549568. URL: Link
  20. Lianbiao Cui, Suyun Yue, Xuan-Hoa Nghiem, Mei Duan. Exploring the risk and economic vulnerability of global energy supply chain interruption in the context of Russo-Ukrainian war. Resources Policy, 2023, vol. 81, no. 103373. URL: Link
  21. Huszár Z.R., Kotró B.B., Tan R.S.K. Dynamic volatility transfer in the European oil and gas industry. Energy Economics, 2023, vol. 127, part A, no. 107052. URL: Link
  22. Syed Jawad Hussain Shahzad, Thi Hong Van Hoang, Bouri E. From pandemic to systemic risk: Contagion in the U.S. tourism sector. Current Issues in Tourism, 2022, vol. 25, iss. 1, pp. 3440. URL: Link
  23. Asaturov K.G., Teplova T.V. [Volatility spillover and contagion effects on stock markets: Global and local leaders determination (Part 1)]. Vestnik Moskovskogo universiteta. Seriya 6: Ekonomika = Moscow University Economic Bulletin, 2014, no. 6, pp. 334. URL: Link (In Russ.)
  24. Gruzdev G.V., Gruzdeva V.V., Klyueva Yu.S. [Development of rural areas based on the use of recreational potential]. Vestnik NGIEI = Bulletin NGIEI, 2021, no. 8, pp. 120134. URL: Link (In Russ.)
  25. Yurlov F.F., Kornilov D.A., Kornilova E.V., Plekhanova A.F. [Comparative evaluation of efficiency of large companies oil and gas sector]. Vestnik NGIEI = Bulletin NGIEI, 2020, no. 7, pp. 8392. URL: Link (In Russ.)

View all articles of issue

 

ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

Journal current issue

Vol. 23, Iss. 3
March 2024

Archive