Tourism, trade and growth: the case of Cyprus
AbstractAlthough the relationship between international trade and economic growth has found a wide application area in the literature over the years, this can not be said about tourism and growth or trade and tourism. This study employs the bounds test for cointegration and Granger causality tests to investigate a long-run equilibrium relationship between tourism, trade and real income growth, and the direction of causality among themselves for Cyprus. Results reveal that tourism, trade and real income growth are cointegrated; thus, a long-run equilibrium relationship can be inferred between these three variables. On the other hand, Granger causality test results suggest that real income growth stimulates growth in international trade (both exports and imports) and international tourist arrivals to the island. Furthermore, growth in international trade (both exports and imports) also stimulates an increase in international tourist arrivals to Cyprus. And finally, real import growth stimulate growth in real exports in the case of Cyprus.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 41 (2009)
Issue (Month): 21 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- 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 o," MPRA Paper 37332, University Library of Munich, Germany, revised 2011.
- Shahbaz, Muhammad, 2012.
"Does trade openness affect long run growth? Cointegration, causality and forecast error variance decomposition tests for Pakistan,"
Elsevier, vol. 29(6), pages 2325-2339.
- Muhammad, Shahbaz, 2012. "Does Trade Openness Affect Long Run Growth? Cointegration, Causality and Forecast Error Variance Decomposition Tests for Pakistan," MPRA Paper 37391, University Library of Munich, Germany, revised 10 Mar 2012.
- TANAKA Ayumu, 2013. "Geographic Concentration of Foreign Visitors to Japan," Discussion papers 13008, Research Institute of Economy, Trade and Industry (RIETI).
- Sarmidi, Tamat & Salleh, Norlida H, 2010. "Dynamic inter-relationship between trade, economic growth and tourism in Malaysia," MPRA Paper 21056, University Library of Munich, Germany.
- Bergh, Andreas & Nilsson, Therese, 2011. "Globalization and Absolute Poverty – A Panel Data Study," Working Paper Series 862, Research Institute of Industrial Economics.
- Ayumu Tanaka, 2013. "Geographic Concentration of Foreign Visitors to Japan," Discussion papers e-12-013, Graduate School of Economics Project Center, Kyoto University.
- Bouzahzah, Mohamed & El Menyari, Younesse, 2013. "The relationship between international tourism and economic growth: the case of Morocco and Tunisia," MPRA Paper 44102, University Library of Munich, Germany.
- Mete Feridun, 2009. "Determinants of Exchange Market Pressure in Turkey: An Econometric Investigation," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 45(2), pages 65-81, March.
- Katircioglu, Salih & Eminer, Fehiman & Aga, Mehmet & Ozyigit, Ahmet, 2010. "Trade and Growth in the Pacific Islands - Empirical Evidence from the Bounds Test to Level Relationships and Granger Causality Tests," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 88-101, December.
- Felipa de Mello-Sampayo & Sofia de Sousa-Vale, 2012.
"Tourism and Growth in European Countries: An Application of Likelihood-Based Panel Cointegration,"
Working Papers Department of Economics
2012/17, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- 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).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.