IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v19y2013i1p115-132.html
   My bibliography  Save this article

Is the Tourism Sector Supportive of Economic Growth? Empirical Evidence on Romanian Tourism

Author

Listed:
  • Camelia Surugiu

    (National Institute for Research and Development in Tourism, 17 Apolodor Street, 050741 Bucharest, Sector 5, Romania, and Faculty of Administration and Business, University of Bucharest, Romania)

  • Marius Razvan Surugiu

    (Institute of National Economy, Romanian Academy, Bucharest, Romania)

Abstract

This paper studies the long-run relationships between tourism expansion and economic growth in Romania during the period 1988–2009. The empirical evidence highlights the nature of causal relationships, if any, between domestic travel and tourism spending, internal travel and tourism consumption, the gross domestic product annual growth rate and the real exchange rate. The paper uses the cointegration method and Granger causality analysis based on the vector error correction model (VECM) and impulse functions. The findings suggest that there are Granger causality relationships running from tourism expansion to economic growth, which sustains the tourism-led growth hypothesis (TLGH). These results emphasize the need for more consistent tourism development plans and strategies to be implemented at national and regional levels by the governmental authorities.

Suggested Citation

  • Camelia Surugiu & Marius Razvan Surugiu, 2013. "Is the Tourism Sector Supportive of Economic Growth? Empirical Evidence on Romanian Tourism," Tourism Economics, , vol. 19(1), pages 115-132, February.
    • Handle: RePEc:sae:toueco:v:19:y:2013:i:1:p:115-132
    DOI: 10.5367/te.2013.0196
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5367/te.2013.0196
    Download Restriction: no
    File URL: https://libkey.io/10.5367/te.2013.0196?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Tiago Neves Sequeira & Carla Campos, 2007. "International Tourism and Economic Growth: A Panel Data Approach," Springer Books, in: Álvaro Matias & Peter Nijkamp & Paulo Neto (ed.), Advances in Modern Tourism Research, chapter 0, pages 153-163, Springer.
    2. Tadayuki Hara, 2012. "Introduction to Tourism Satellite Accounts," Chapters, in: Murat Kasimoglu (ed.), Strategies for Tourism Industry - Micro and Macro Perspectives, IntechOpen.
    3. Elias Soukiazis & Sara Proença, 2008. "Tourism as an alternative source of regional growth in Portugal: a panel data analysis at NUTS II and III levels," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 7(1), pages 43-61, April.
    4. Calvin Jones & Max Munday & Annette Roberts, 2003. "Regional Tourism Satellite Accounts: A Useful Policy Tool?," Urban Studies, Urban Studies Journal Limited, vol. 40(13), pages 2777-2794, December.
    5. Brida, Juan Gabriel & Pereyra, Juan S. & Risso, Wiston Adrián & Devesa, María Jesús Such & Aguirre, Sandra Zapata, 2008. "The Tourism-led Growth Hypothesis: Empirical Evidence from Colombia," MPRA Paper 25286, University Library of Munich, Germany, revised 19 Mar 2009.
    6. repec:rre:publsh:v:37:y:2007:i:2:p:186-206 is not listed on IDEAS
    7. Albert Steenge & Annemieke Van De Steeg, 2010. "Tourism Multipliers For A Small Caribbean Island State; The Case Of Aruba," Economic Systems Research, Taylor & Francis Journals, vol. 22(4), pages 359-384.
    8. Bjarne Madsen & Jie Zhang, 2010. "Towards A New Framework For Accounting And Modelling The Regional And Local Impacts Of Tourism," Economic Systems Research, Taylor & Francis Journals, vol. 22(4), pages 313-340.
    9. Felipa de Mello-Sampayo & Sofia de Sousa-Vale, 2010. "Tourism and Growth in European Countries: An Application of Likelihood-Based Panel Cointegration," Working Papers Series 1 ercwp0510, ISCTE-IUL, Business Research Unit (BRU-IUL).
    10. Gheorghe Zaman & Valentina Vasile & Marius Surugiu & Camelia Surugiu, 2010. "Tourism and Economic Development in Romania: Input-Output Analysis Perspective," Romanian Journal of Economics, Institute of National Economy, vol. 31(2(40)), pages 5-37, December.
    11. Josaphat Kweka & Oliver Morrissey & Adam Blake, 2003. "The economic potential of tourism in Tanzania," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(3), pages 335-351.
    12. Arslanturk, Yalcin & Balcilar, Mehmet & Ozdemir, Zeynel Abidin, 2011. "Time-varying linkages between tourism receipts and economic growth in a small open economy," Economic Modelling, Elsevier, vol. 28(1), pages 664-671.
    13. Paolo Figini & Laura Vici, 2010. "Tourism and Growth in a Cross Section of Countries," Tourism Economics, , vol. 16(4), pages 789-805, December.
    14. Sarah Cline & Andrew Seidl, 2010. "Combining Non-Market Valuation And Input-Output Analysis For Community Tourism Planning: Open Space And Water Quality Values In Colorado, Usa," Economic Systems Research, Taylor & Francis Journals, vol. 22(4), pages 385-405.
    15. Camelia SURUGIU, 2009. "The Economic Impact of Tourism. An Input-Output Analysis," Romanian Journal of Economics, Institute of National Economy, vol. 29(2(38)), pages 142-161, December.
    16. Kytzia, Susanne & Walz, Ariane & Wegmann, Mattia, 2011. "How can tourism use land more efficiently? A model-based approach to land-use efficiency for tourist destinations," Tourism Management, Elsevier, vol. 32(3), pages 629-640.
    17. Calvin Jones & Max Munday, 2004. "Evaluating the Economic Benefits from Tourism Spending through Input-Output Frameworks: Issues and Cases," Local Economy, London South Bank University, vol. 19(2), pages 117-133, May.
    18. Schubert, Stefan Franz & Brida, Juan Gabriel & Risso, Wiston Adrián, 2011. "The impacts of international tourism demand on economic growth of small economies dependent on tourism," Tourism Management, Elsevier, vol. 32(2), pages 377-385.
    19. Konan, Denise Eby & Chan, Hing Ling, 2010. "Greenhouse gas emissions in Hawai[modifier letter turned comma]i: Household and visitor expenditure analysis," Energy Economics, Elsevier, vol. 32(1), pages 210-219, January.
    20. Camelia Surugiu & Cristi Frent & Marius Surugiu, 2009. "Tourism and its impact upon the Romanian economy: an input-output approach," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 56, pages 355-376, November.
    21. Blake, Adam & Arbache, Jorge Saba & Sinclair, Thea & Teles, Vladimir Kuhl, 2010. "Tourism and poverty relief," Textos para discussão 237, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Salahodjaev, Raufhon & Safarova, Nilufar, 2015. "Do foreign visitors reward post-communist countries? A panel evidence for tourism-growth nexus," MPRA Paper 66215, University Library of Munich, Germany.
    2. Ioana Meșter & Ramona Simuț & Liana Meșter & Dorin Bâc, 2023. "An Investigation of Tourism, Economic Growth, CO 2 Emissions, Trade Openness and Energy Intensity Index Nexus: Evidence for the European Union," Energies, MDPI, vol. 16(11), pages 1-26, May.
    3. Blanka Skrabic Peric & Zana Vidovic, 2017. "Heterogeneous Panel Granger causality between GDP and Tourism in 11 EU members in Central and Southeastern Europe," Eastern European Business and Economics Journal, Eastern European Business and Economics Studies Centre, vol. 3(1), pages 6-27.
    4. Xiang Gao & Zhenhua Gu & Shuzhen Niu & Sunghan Ryu, 2022. "Effects of International Tourist Flow on Startup Financing: Investment Scope and Market Potential Perspectives," SAGE Open, , vol. 12(4), pages 21582440221, October.
    5. Lingaraj MALLICK & Ummalla MALLESH & Jaganath BEHERA, 2016. "Does tourism affect economic growth in Indian states? Evidence from panel ARDL model," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(606), S), pages 183-194, Spring.
    6. Azeez, Rasheed Oluwaseyi, 2019. "Is Tourism a Sustainable Haven for Economic Growth in North African Countries? An Evidence From Panel Analysis," MPRA Paper 93449, University Library of Munich, Germany.
    7. Abdul Rehman & Hengyun Ma & Muhammad Irfan & Munir Ahmad & Ousmane Traore, 2020. "Investigating the Influence of International Tourism in Pakistan and Its Linkage to Economic Growth: Evidence From ARDL Approach," SAGE Open, , vol. 10(2), pages 21582440209, June.
    8. Antonakakis, Nikolaos & Dragouni, Mina & Filis, George, 2015. "How strong is the linkage between tourism and economic growth in Europe?," Economic Modelling, Elsevier, vol. 44(C), pages 142-155.
    9. Cao, Zheng & Li, Gang & Song, Haiyan, 2017. "Modelling the interdependence of tourism demand: The global vector autoregressive approach," Annals of Tourism Research, Elsevier, vol. 67(C), pages 1-13.
    10. Paulo Maçãs Nunes & Zélia Serrasqueiro, 2017. "Short-term debt and long-term debt determinants in small and medium-sized hospitality firms," Tourism Economics, , vol. 23(3), pages 543-560, May.
    11. 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.
    12. Jianxu Liu & Vicente Ramos & Bing Yang & Mengjiao Wang & Songsak Sriboonchitta, 2024. "Analysing the dynamic co-movement between tourism and expected economic growth considering extreme events," Tourism Economics, , vol. 30(1), pages 3-26, February.
    13. Mina Dragouni & George Filis & Nikolaos Antonakakis, 2013. "Time-Varying Interdependencies of Tourism and Economic Growth: Evidence from European Countries," FIW Working Paper series 128, FIW.
    14. Bart Neuts, 2020. "Tourism and urban economic growth: A panel analysis of German cities," Tourism Economics, , vol. 26(3), pages 519-527, May.
    15. Shahbaz, Muhammad & Ferrer, Román & Hussain Shahzad, Syed Jawad & Haouas, Ilham, 2017. "Is the tourism-economic growth nexus time-varying? Bootstrap rolling-window causality analysis for the top ten tourist destinations," MPRA Paper 82713, University Library of Munich, Germany, revised 04 Nov 2017.
    16. Viorica Chirilă & Gina Ionela Butnaru & Ciprian Chirilă, 2020. "Spillover Index Approach in Investigating the Linkage between International Tourism and Economic growth in Central and Eastern European Countries," Sustainability, MDPI, vol. 12(18), pages 1-36, September.
    17. Sadia Bano & Mehtab Alam & Anwar Khan & Lu Liu, 2021. "The nexus of tourism, renewable energy, income, and environmental quality: an empirical analysis of Pakistan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(10), pages 14854-14877, October.
    18. Ceyhun Can OZCAN & Murat ASLAN & Saban NAZLIOGLU, 2017. "Economic freedom, economic growth and international tourism for post-communist (transition) countries: A panel causality analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(611), S), pages 75-98, Summer.
    19. Micic, Ja., 2018. "Tourism development and regional disparities in Serbia," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 4(4), pages 167-173.
    20. Khadijah Hussain, 2020. "Social Media Impact On Tourism In Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(2), pages 74-84, June.
    21. Tihana Škrinjarić, 2019. "Examining the Causal Relationship between Tourism and Economic Growth: Spillover Index Approach for Selected CEE and SEE Countries," Economies, MDPI, vol. 7(1), pages 1-19, March.
    22. Perić Jože & Radić Maja Nikšić, 2016. "FDI-led tourism growth hypothesis: empirical evidence from Croatian tourism," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 7(3), pages 168-175, December.
    23. Muhammad Shahbaz & Román Ferrer & Syed Jawad Hussain Shahzad & Ilham Haouas, 2018. "Is the tourism–economic growth nexus time-varying? Bootstrap rolling-window causality analysis for the top 10 tourist destinations," Applied Economics, Taylor & Francis Journals, vol. 50(24), pages 2677-2697, May.
    24. Uktam Umurzakov & Shakhnoza Tosheva & Raufhon Salahodjaev, 2023. "Tourism and Sustainable Economic Development: Evidence from Belt and Road Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 503-516, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stanislav H. Ivanov & Craig Webster, 2013. "Tourism's Contribution to Economic Growth: A Global Analysis for the First Decade of the Millennium," Tourism Economics, , vol. 19(3), pages 477-508, June.
    2. Mina Dragouni & George Filis & Nikolaos Antonakakis, 2013. "Time-Varying Interdependencies of Tourism and Economic Growth: Evidence from European Countries," FIW Working Paper series 128, FIW.
    3. Ceyhun Can OZCAN & Murat ASLAN & Saban NAZLIOGLU, 2017. "Economic freedom, economic growth and international tourism for post-communist (transition) countries: A panel causality analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(611), S), pages 75-98, Summer.
    4. Carmen María Llorca-Rodríguez & Amalia Cristina Casas-Jurado & Rosa María García-Fernández, 2016. "The Regional Polarization of Tourism's Contribution to Economic Growth in Peru: Alternative Solutions," Tourism Economics, , vol. 22(2), pages 397-415, April.
    5. Stauvermann, Peter Josef & Kumar, Ronald Ravinesh, 2017. "Productivity growth and income in the tourism sector: Role of tourism demand and human capital investment," Tourism Management, Elsevier, vol. 61(C), pages 426-433.
    6. Robertico Croes & Manuel A. Rivera, 2017. "Tourism’s potential to benefit the poor," Tourism Economics, , vol. 23(1), pages 29-48, February.
    7. Chor Foon Tang & Salah Abosedra, 2016. "Tourism and growth in Lebanon: new evidence from bootstrap simulation and rolling causality approaches," Empirical Economics, Springer, vol. 50(2), pages 679-696, March.
    8. Galina Williams, 2016. "Economic Impacts from Development of the Coastal Town in Queensland on Tourism and Regional Economy," Resources, MDPI, vol. 5(4), pages 1-16, December.
    9. Azeez, Rasheed Oluwaseyi, 2019. "Is Tourism a Sustainable Haven for Economic Growth in North African Countries? An Evidence From Panel Analysis," MPRA Paper 93449, University Library of Munich, Germany.
    10. Carrascal Incera, André & Fernández, Melchor Fernández, 2015. "Tourism and income distribution: Evidence from a developed regional economy," Tourism Management, Elsevier, vol. 48(C), pages 11-20.
    11. Eglantina Hysa & Edit Gjergji, 2018. "The Long Run Relationship Between Tourism And Economic Growth In Western Balkan Countries: A Panel Co-Integration Analysis," Revista de turism - studii si cercetari in turism / Journal of tourism - studies and research in tourism, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 25(25), pages 1-3, June.
    12. Adriana Csikosova & Katarina Culkova & Erik Weiss & Maria Janoskova, 2021. "Evaluation of Market with Accommodation Facilities Considering Risk Influence—Case Study Slovakia," JRFM, MDPI, vol. 14(5), pages 1-17, May.
    13. Andreas G. Georgantopoulos, 2013. "Tourism Expansion and Economic Development: Var/Vecm Analysis and Forecasts for the Case of India," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(4), pages 464-482, April.
    14. Nnamdi Chinwendu Nwaeze & Kingsley Ikechukwu Okere & Izuchukwu Ogbodo & Obumneke Bob Muoneke & Ifeoma Nwakaego Sandra Ngini & Samuel Uchezuike Ani, 2023. "Dynamic linkages between tourism, economic growth, trade, energy demand and carbon emission: evidence from EU," Future Business Journal, Springer, vol. 9(1), pages 1-12, December.
    15. Manuel Vanegas Sr & William Gartner & Benjamin Senauer, 2015. "Tourism and Poverty Reduction: An Economic Sector Analysis for Costa Rica and Nicaragua," Tourism Economics, , vol. 21(1), pages 159-182, February.
    16. Abdul Rehman & Hengyun Ma & Muhammad Irfan & Munir Ahmad & Ousmane Traore, 2020. "Investigating the Influence of International Tourism in Pakistan and Its Linkage to Economic Growth: Evidence From ARDL Approach," SAGE Open, , vol. 10(2), pages 21582440209, June.
    17. Ioannis Kostakis, 2020. "Is Tourism a Key Factor for Economic Growth? Fresh Evidence from South Europe Using Panel Cointegration and PVAR Analyses," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 6(2), pages 123-138, December.
    18. Brida, Juan Gabriel & Pereyra, Juan Sebastián & Such, María Jesús & Pulina, Manuela, 2011. "Causalidad entre turismo y crecimiento económico de largo plazo: una revisión crítica de la literatura econométrica [Causality between tourism and long-term economic growth: a critical review of th," MPRA Paper 37332, University Library of Munich, Germany, revised 2011.
    19. Kristen Corrie & Natalie Stoeckl & Taha Chaiechi, 2013. "Tourism and Economic Growth in Australia: An Empirical Investigation of Causal Links," Tourism Economics, , vol. 19(6), pages 1317-1344, December.
    20. Maja Bacovic & Danijela Jacimovic & Julija Cerovic Smolovic, . "Impact of Export of Travel Services on Current Account Balance and Growth in Mediterranean Countries," Prague Economic Papers, Prague University of Economics and Business, vol. 0.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:toueco:v:19:y:2013:i:1:p:115-132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.