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Tourism And Economic Growth: The Case Of Singapore

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  • LEE, Chew Ging

Abstract

This paper investigates the long-run and the short-run dynamics between tourism and economic growth in Singapore. Using the bounds test developed by Pesaran et al. (2001), cointegrating relationship between tourism and economic growth is not found. The standard Granger causality test reveals that there is a unidirectional Granger causality from economic growth to tourism. This study provides evidence to support growth-led tourism hypothesis.

Suggested Citation

  • LEE, Chew Ging, 2008. "Tourism And Economic Growth: The Case Of Singapore," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 8(1), pages 89-98.
    • Handle: RePEc:eaa:eerese:v:8:y2008:i:8_5
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    References listed on IDEAS

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    1. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    2. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    3. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
    4. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    5. Jacint Balaguer & Manuel Cantavella-Jorda, 2002. "Tourism as a long-run economic growth factor: the Spanish case," Applied Economics, Taylor & Francis Journals, vol. 34(7), pages 877-884.
    6. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
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    Citations

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    Cited by:

    1. Ihsaanul, Ahmad & Masih, Mansur, 2018. "Would the volatility of oil price affect the GDP of a country ? Singaporean evidence," MPRA Paper 112462, University Library of Munich, Germany.
    2. Boopen Seetanah & Kesseven Padachi & Sawkut Rojid, 2011. "Tourism and Economic Growth: African Evidence from Panel Vector Autoregressive Framework," WIDER Working Paper Series wp-2011-033, World Institute for Development Economic Research (UNU-WIDER).
    3. Pat Obi & Godwin-Charles Ogbeide, 2022. "The Mediating Effects of Implied Volatility and Exchange Rate on the U.S. Tourism-Growth Nexus," JRFM, MDPI, vol. 15(3), pages 1-16, February.
    4. Eda BALIKÇIOĞLU & Kutay OKTAY, 2015. "Türkiye’de Turizm Gelirleri ve Ekonomik Büyüme İlişkisinin Kamu Politikaları Doğrultusunda Değerlendirilmesi," Sosyoekonomi Journal, Sosyoekonomi Society, issue 23(25).
    5. Holzner, Mario, 2011. "Tourism and economic development: The beach disease?," Tourism Management, Elsevier, vol. 32(4), pages 922-933.
    6. Ma, Tao & Hong, Tao & Zhang, Haozhe, 2015. "Tourism spatial spillover effects and urban economic growth," Journal of Business Research, Elsevier, vol. 68(1), pages 74-80.
    7. Naradda Gamage, Sisira Kumara & Kumudumali, S. H. T. & Otamurodov, Shavkat, 2020. "The Nexus between Tourism and Economic Growth: A Systematic Literature Review and Future Research Directions," MPRA Paper 104086, University Library of Munich, Germany.
    8. Carmen GONZÁLEZ & Francisco JAREÑO, 2014. "Financial Analysis Of The Main Hotel Chains Of The Spanish Tourism Sector," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 14(2).
    9. Lei Kang & Zhaoping Yang & Yunxiao Dang & Wenzhong Zhang & Caicai Liu, 2022. "Can Tourism Development Make Cities More Livable? Investigating 40 Cities in China," IJERPH, MDPI, vol. 19(1), pages 1-17, January.
    10. Muhammad Ahad, 2016. "Does Tourism-led Growth Hypothesis exist in Pakistan? A Freshlook from Combine Cointegration and Causality Approach with Structural Breaks," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 4(2), pages 94-111, February.
    11. Sakib, S M Nazmuz, 2021. "Factors which are Affecting Human Capital in Singapore," Thesis Commons 38txr, Center for Open Science.
    12. Gautam, Bishnu Prasad, 2014. "Economic Dynamics of Tourism in Nepal: A VECM Approach," MPRA Paper 58102, University Library of Munich, Germany.
    13. Metaxas, Theodore & Folinas, Sotiris, 2016. "Gambling Tourism and Economic Development: Some lessons from Macao," MPRA Paper 72397, University Library of Munich, Germany.
    14. Han Liu & Ying Liu & Yonglian Wang, 2021. "Exploring the influence of economic policy uncertainty on the relationship between tourism and economic growth with an MF-VAR model," Tourism Economics, , vol. 27(5), pages 1081-1100, August.
    15. Alemu Haile, Minyahil & Daba Megerssa, Girma, 2020. "Testing The Stability Of Tourism-Led Growth Hypothesis For Ethiopia," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 11(2), pages 121-137.

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    More about this item

    Keywords

    Tourism; Economic growth; Granger causality;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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