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Economic Growth and Tourism in Barbados: A Test of the Supply-side Hypothesis

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  • Jackman, Mahalia
  • Lorde, Troy

Abstract

The goal of this study is to examine the supply side hypothesis of tourism demand, that is, to answer the question: Does economic growth in Barbados spur tourism growth. Results suggest that there is a long-run relationship between real GDP in Barbados and tourist arrivals. Specifically, we find that a 1% expansion in real GDP is associated with a 1.2% increase in tourist arrivals. Further, our Granger causality test suggests that the supply-side hypothesis is valid for Barbados.

Suggested Citation

  • Jackman, Mahalia & Lorde, Troy, 2009. "Economic Growth and Tourism in Barbados: A Test of the Supply-side Hypothesis," MPRA Paper 95548, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:95548
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    References listed on IDEAS

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    Cited by:

    1. Osinubi Tolulope T. & Ajayi Adedoyin O. & Olaniyi Clement O. & Osinubi Olufemi B., 2021. "A New Intuition into Tourism-Inclusive Growth Nexus in Turkey and Nigeria (1995 – 2018)," Economics, Sciendo, vol. 9(1), pages 221-241, June.
    2. Troy Lorde & Tennyson S. D. Joseph, 2019. "Airbnb, technological change and disruption in Barbadian tourism: a theoretical framework," Third World Quarterly, Taylor & Francis Journals, vol. 40(12), pages 2190-2209, December.

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    More about this item

    Keywords

    tourism; economic growth; Barbados;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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