Causality between Economic Growth and Tourism Expansion: Empirical Evidence from Trentino - Alto Adige
AbstractThis paper investigates the causal relations between tourism growth, relative prices and economic expansion for the Trentino-Alto Adige/Südtirol, a region of northeast Italy bordering on Switzerland and Austria. Johansen cointegration analysis shows the existence of one cointegrated vector among real GDP, tourism and relative prices where the corresponding elasticities are positive. Tourism and relative prices are weakly exogenous to real GDP. A variation of the Granger Causality test developed by Toda and Yamamoto is performed to reveal the uni-directional causality from tourism to real GDP. Impulse response analysis shows that a shock in tourism expenditure produces a fast positive effect on growth.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 25316.
Date of creation: 08 Sep 2009
Date of revision: 14 Dec 2009
Publication status: Published in TOURISMOS: An International Multidisciplinary Journal of Tourism 2.5(2010): pp. 87-98
economic growth; tourism expenditure; Johansen cointegration test; Granger causality; Trentino- Alto Adige;
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- M1 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
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