Research note: Are Singapore's tourism markets converging with structural breaks?

This research note tests whether or not Singapore's 15 major tourist source markets are converging. The study uses monthly data for the period January 1994 to June 2011, and the results are as follows: (a) univariate unit root tests without any structural breaks show that 13 out of the 15 tourist markets are diverging; (b) 80% of the tourism markets support the evidence for convergence when multiple structural breaks are incorporated; (c) the evidence of convergence is strongly supported under different panel settings, leading to the conclusion that policies to boost the total tourists arrivals in Singapore have been successful.