Alola, Andrew AdewaleAsongu, Simplice A.Alola, Uju Violet2019-12-302019-12-3020191472-38911479-1854https://hdl.handle.net/11363/1593https://doi.org/This study investigates the nexus between tourism development and house prices in the Republic of Cyprus over the period spanning from 2005Q1 to 2016Q4. Tourism indicators vis-a-vis tourism arrivals along with other explanatory variables (the domestic credit, the land area per person, and the consumer price index) are employed in a multivariate autoregressive distributed lag (ARDL)-bound test model. The empirical results indicate a significant evidence of cointegration. Indicatively, an observed adjustment of about 44% from short-run to long-run implies that the model is not relatively slow to adjust to disequilibrium. Importantly, a percent increase in tourism arrivals is observed to cause a rise in house price by about 37%. Expectedly, it is statistically observed that as the land area per person decreases, it is accompanied by a hike in house price. Also, the impacts of domestic credit offered to private enterprises and the consumer price index are different from the results in previous studies. As a policy guide, the government of Cyprus and stakeholder in the tourism and housing sectors should outline a strategy that will ensure the social welfare of people such that housing availability is not hampered by tourism activities.eninfo:eu-repo/semantics/openAccessAttribution-NonCommercial-NoDerivs 3.0 United StatesAUTOREGRESSIVE TIME-SERIESUNIT-ROOTGRANGER CAUSALITYBOUNDS TESTGROWTHCONSUMPTIONHYPOTHESISVARIABLESArticle10.1002/pa.20352-s2.0-85076352020Q1WOS:000502277200001N/A