Part II will be the application of principles and tools in econometrics. The problem with using econometric tools is that we have learned the principles but have yet to be able to apply them in practice for further research that needs to be studied or solved. Therefore, in this section, the author brings together peer-reviewed research to apply to the actual situation in terms of tourism, which is the case in Thailand, and finance and investment, which is linked to foreign markets. The results obtained can be used for practical purposes. They can provide policy recommendations to the government or relevant agencies. 

We apply the econometrics tools to tourism and financial economics because the service sector and its operational efficiency are increasingly crucial in GDP creation and volatility generation in economic development. Efficient and growth-generating management of such vital elements of the service sector as tourism, financial instruments, and petroleum and other futures markets; must be balanced against concern for both stability (reductions in temporally predictable extreme fluctuations) and self-immunization against the vagaries of external natural, financial, petroleum-based. As service-sector markets are frequently co-integrated, it is also vital to determine whether an investment in one can offset downside risk in the others. 

PART II - Econometrics Tools Application for Cases Studies of Tourism and Financial Economics

Chapter 8           Tourist Demand Using VECM and Cointegration

Chapter 9           Modelling the Growth Rate and Volatility in International Tourist Arrivals 

Chapter 10         Volatility transmission, Comovements, and Spillovers Models with applications to Financial Economics

Keywords: multivariate time series; volatility transmission; comovement and spillover; multivariate GARCH

JEL Classification: C51; C52; C54; C55; C58.