Tourism, environmental quality and economic growth: empirical evidence and policy implications
AbstractThe causal relationship between tourist demand and supply is investigated employing four time series models - the first model includes nights of stay and number of supplied accommodation; the second model uses nights of stay and supplied beds (i.e. capacity); the third model employs nights of stay and the quality of supplied accommodation; finally, the fourth model includes nights of stay and the quality of supplied capacity. To test for Granger causality in the presence of a cointegration relationship between the economic variables of interest, a bivariate VAR model is used. Empirical results are from four distinctive models for Sardinia (Italy) over the time span 1955 to 2004. The first model suggests a unidirectional causal relationship running from demand to accommodation firms; the second model suggests a bi-directional causal relationship between demand and capacity. The third and fourth models indicate the existence of a unidirectional causal relationship running from quality to demand. This empirical finding implies that the environmental conservation policy (Piano Paesaggistico Regionale), adopted by the Region of Sardinia, may be feasible without compromising the number of tourists visiting Sardinia and hence, its economic growth.
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 InfoPaper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200609.
Date of creation: 2006
Date of revision:
tourist demand; supply; quality; growth; granger causality;
Find related papers by JEL classification:
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- O21 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thornton, John, 1997. "Exports and economic growth: Evidence from 19th Century Europe1," Economics Letters, Elsevier, vol. 55(2), pages 235-240, August.
- A. Lanza & F. Pigliaru, 1999. "Why Are Tourism Countries Small and Fast-Growing?," Working Paper CRENoS 199906, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Granger, C. W. J., 1988. "Some recent development in a concept of causality," Journal of Econometrics, Elsevier, vol. 39(1-2), pages 199-211.
- 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.
- Oh, Wankeun & Lee, Kihoon, 2004. "Energy consumption and economic growth in Korea: testing the causality relation," Journal of Policy Modeling, Elsevier, vol. 26(8-9), pages 973-981, December.
- Granger, Clive W.J. & Huang, Bwo-Nung & Yang, Chin W., 1998.
"A Bivariate Causality between Stock Prices and Exchange Rates: Evidence from Recent Asia Flu,"
University of California at San Diego, Economics Working Paper Series
qt9bk607p6, Department of Economics, UC San Diego.
- Granger, Clive W. J. & Huangb, Bwo-Nung & Yang, Chin-Wei, 2000. "A bivariate causality between stock prices and exchange rates: evidence from recent Asianflu," The Quarterly Review of Economics and Finance, Elsevier, vol. 40(3), pages 337-354.
- Isabel Cortes-Jimenez & Manuela Pulina, 2006. "Tourism and Growth: Evidence for Spain and Italy," ERSA conference papers ersa06p128, European Regional Science Association.
- O. Carboni & G. Medda, 2007. "Government Size and the Composition of Public Spending in a Neoclassical Growth Model," Working Paper CRENoS 200701, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- G. Marletto, 2007. "Crossing The Alps: Three Transport Policy Options," Working Paper CRENoS 200712, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antonello Pau).
If references are entirely missing, you can add them using this form.