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.
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Find related papers by JEL classification: O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions
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