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A literature review on the tourism-led-growth hypothesis

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  • JG. Brida
  • M. Pulina

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Abstract

The aim of this paper is to provide a comprehensive literature review on the temporal relationship between tourism and economic growth. Specifically, the role of a such economic activity, as a promoter of short and long run economic growth, is investigated by assessing the so-called Tourism Led Growth Hypothesis (TLGH). To this aim, various methodological approaches have been used, such as VAR, VECM, ARDL, ARCH, GARCH, cross section and panel data. The cointegrating relationship of the economic variables allows one to test the short and long run Granger no-causality. Overall, the empirical findings, emerging from the existing literature, provide evidence that indeed tourism activity drives economic development in all the countries analysed. This outcome further supports the well-established contribution that international tourism has to the economic development.

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Bibliographic Info

Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 201017.

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Date of creation: 2010
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Handle: RePEc:cns:cnscwp:201017

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Keywords: tourism; economic growth; granger causality; comprehensive review;

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References

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  1. Javier Capó Parrilla & Antoni Riera Font & Jaume Rosselló Nadal, 2005. "Dutch Disease in Tourism Economies. Evidence from Spain," CRE Working Papers (Documents de treball del CRE) 2005/01, Centre de Recerca Econòmica (UIB ·"Sa Nostra"), revised Jan 2005.
  2. Lutkepohl, Helmut, 1982. "Non-causality due to omitted variables," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 367-378, August.
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Cited by:
  1. 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.
  2. Tveteras, Sigbjorn & Roll, Kristin H., 2011. "Long-haul flights and tourist arrivals," MPRA Paper 32157, University Library of Munich, Germany.
  3. E. Marrocu & R. Paci, 2012. "Tourism and regional growth in Europe," Working Paper CRENoS 201235, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  4. Juan Gabriel Brida & Diego Giuliani, 2012. "Empirical assessment of the tourism-led growth hypothesis: the case of the “Tirol-Südtirol-Trentino†Europaregion," DISA Working Papers 2012/02, Department of Computer and Management Sciences, University of Trento, Italy, revised Mar 2012.
  5. Dogan Gursoy & Anna Maria Parroco & Raffaele Scuderi, 2013. "An examination of tourist arrivals dynamics using short-term time series data: a space-time cluster approach," BEMPS - Bozen Economics & Management Paper Series BEMPS06, School of Economics and Management at the Free University of Bozen.
  6. Theodore Panagiotidis & Thomas Panagiotou & Maurizio Mussoni, 2012. "Tourism Led Growth: Evidence from Panel Cointegration Tests," Working Paper Series 74_12, The Rimini Centre for Economic Analysis.

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