Tourism Led Growth: Evidence from Panel Cointegration Tests
AbstractThe Tourism-Led-Growth hypothesis is investigated in this study. We employ a panel of 187 countries for a period that spans from 1995 to 2009. Panel unit root tests confirm that both GDP and tourism receipts are non-stationary. Alternative panel cointegration tests are employed and the results suggest that there is a long-run relationship between tourism receipts and GDP. Different specifications that take into account the accounting effect, confirm the latter. Finally, the long-run elasticities of tourism receipts on GDP are found to take values close to 0.2.
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Bibliographic InfoPaper provided by The Rimini Centre for Economic Analysis in its series Working Paper Series with number 74_12.
Date of creation: Nov 2012
Date of revision:
panel unit roots; panel cointegration; tourism-led-growth;
Find related papers by JEL classification:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
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