IDEAS home Printed from https://ideas.repec.org/a/ejn/ejefjr/v8y2020i2p68-84.html
   My bibliography  Save this article

Tourism and Economic Growth in African Largest Economy

Author

Listed:
  • Mary Kehinde Salawu

    (University of Johannesburg, South Africa)

Abstract

The study examines the nexus between tourism and economic growth in Nigeria from 1995- 2017. Data were sourced from World Development Indicator and World Tourism Council data base online. Autoregressive distributed lag model (ARDL) was used in analyzing the data. The result of the Bounds test shows that the value of the F – statistics is greater than the value of the upper bound of the Pesaran, Chin and Smith statistics table at 1% level of significance, which showed that there is a long run relationship among economic growth (GRGDP), growth in the receipt from tourism (GRTR) and exchange rate (EXR). The long run result stipulates that there is no significant relationship between GRTR and GRGDP on one hand and LEXR and GRGDP on the other hand. In the short run, tourism had negative impact on Nigeria’s economic growth. The estimate indicates substantial role for time, previous state of the economy and tourism growth. While this result seems a contrast to theory, there may have been many factors connected to tourism development and practices which are anti-growth in the case of Nigeria. Furthermore, a percentage change in exchange rate reveals an ignorable though negative relationship with GRGDP. This may be due to uncertainty which surrounds exchange rate in a flexible regime. The study recommends that the government should invest in infrastructural facilities and tourist centers in order to boost economy of the country. Budgetary allocation can be channeled to tourism industry. Tax incentives to tourism firms should be encouraged.

Suggested Citation

  • Mary Kehinde Salawu, 2020. "Tourism and Economic Growth in African Largest Economy," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 8(2), pages 68-84.
    • Handle: RePEc:ejn:ejefjr:v:8:y:2020:i:2:p:68-84
    as

    Download full text from publisher

    File URL: https://eurasianpublications.com/wp-content/uploads/2021/02/EJEF-8.2.2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James E. Payne & Andrea Mervar, 2010. "Research Note: The Tourism–Growth Nexus in Croatia," Tourism Economics, , vol. 16(4), pages 1089-1094, December.
    2. Isabel Cortés-Jiménez & Manuela Pulina & Carme Riera i Prunera & Manuel Artís, 2009. "Tourism and Exports as a means of Growth," IREA Working Papers 200910, University of Barcelona, Research Institute of Applied Economics, revised May 2009.
    3. Tobias Arvemo & Urban Gråsjö, 2012. "Do different measures of economic growth lead to different conclusions?," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), Entrepreneurship, Social Capital and Governance, chapter 11, pages 263-280, Edward Elgar Publishing.
    4. Davoud Mahmoudinia & Ehsan Salimi Soderjani & Farshid Pourshahabi, 2011. "Economic Growth, Tourism Receipts and Exchange Rate in MENA zone: Using Panel Causality Technique," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 16(2), pages 129-146, spring.
    5. Azeez, Rasheed Oluwaseyi, 2019. "Is Tourism a Sustainable Haven for Economic Growth in North African Countries? An Evidence From Panel Analysis," MPRA Paper 93449, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ceyhun Can OZCAN & Murat ASLAN & Saban NAZLIOGLU, 2017. "Economic freedom, economic growth and international tourism for post-communist (transition) countries: A panel causality analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(611), S), pages 75-98, Summer.
    2. Constantin ANGHELACHE & Madalina-Gabriela ANGHEL & Florin Paul Costel LILEA & Doina BUREA & Doina AVRAM, 2017. "European Union Strategy For Industry, Trade And Services Development," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(8), pages 145-158, August.
    3. Ann-Ni Soh & Chin-Hong Puah & Meng-Chang Jong, 2022. "Macroeconomic Determinants of Tourism Demand in Malaysia: A Markov Switching Regression Approach," Business Management and Strategy, Macrothink Institute, vol. 13(2), pages 95-107, December.
    4. Juan Jiménez & Jordi Perdiguero, 2012. "Does Rigidity of Prices Hide Collusion?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 41(3), pages 223-248, November.
    5. Muhammad Ahad, 2016. "Does Tourism-led Growth Hypothesis exist in Pakistan? A Freshlook from Combine Cointegration and Causality Approach with Structural Breaks," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 4(2), pages 94-111, February.
    6. Manuela Alcañiz & Montserrat Guillén & Daniel Sánchez-Moscona & Miguel Santolino & Oscar Llatje & Lluís Ramon, 2013. "Prevalence of alcohol-impaired drivers based on random breath tests in a roadside survey," Working Papers XREAP2013-05, Xarxa de Referència en Economia Aplicada (XREAP), revised Jul 2013.
    7. Jorge Ridderstaat & Robertico Croes & Peter Nijkamp, 2013. "Modelling Tourism Development and Long-run Economic Growth in Aruba," Tinbergen Institute Discussion Papers 13-145/VIII, Tinbergen Institute.
    8. Calzada, Joan & Martínez-Santos, Fernando, 2014. "Broadband prices in the European Union: Competition and commercial strategies," Information Economics and Policy, Elsevier, vol. 27(C), pages 24-38.
    9. Esther Goya & Esther Vayá & Jordi Suriñach, 2012. "“Do intra- and inter-industry spillovers matter? CDM model estimates for Spain”," IREA Working Papers 201214, University of Barcelona, Research Institute of Applied Economics, revised Sep 2012.
    10. Faiza Manzoor & Longbao Wei & Muhammad Asif & Muhammad Zia ul Haq & Hafiz ur Rehman, 2019. "The Contribution of Sustainable Tourism to Economic Growth and Employment in Pakistan," IJERPH, MDPI, vol. 16(19), pages 1-14, October.
    11. Yonglian Wang & Lijun Wang & Han Liu & Yongjing Wang, 2021. "The Robust Causal Relationships Among Domestic Tourism Demand, Carbon Emissions, and Economic Growth in China," SAGE Open, , vol. 11(4), pages 21582440211, October.
    12. Jordi Perdiguero & Juan Luis Jiménez, 2012. "“Policy options for the promotion of electric vehicles: a review”," IREA Working Papers 201208, University of Barcelona, Research Institute of Applied Economics, revised Mar 2012.
    13. Abdul Rehman & Hengyun Ma & Muhammad Irfan & Munir Ahmad & Ousmane Traore, 2020. "Investigating the Influence of International Tourism in Pakistan and Its Linkage to Economic Growth: Evidence From ARDL Approach," SAGE Open, , vol. 10(2), pages 21582440209, June.
    14. Artis, Michael & Moreno, Rosina & Miguelez, Ernest, 2009. "Assessing agglomeration economies in a spatial framework with endogenous regressors," CEPR Discussion Papers 7267, C.E.P.R. Discussion Papers.
    15. Yong Su & Jacob Cherian & Muhammad Safdar Sial & Alina Badulescu & Phung Anh Thu & Daniel Badulescu & Sarminah Samad, 2021. "Does Tourism Affect Economic Growth of China? A Panel Granger Causality Approach," Sustainability, MDPI, vol. 13(3), pages 1-12, January.
    16. Sadia Bano & Mehtab Alam & Anwar Khan & Lu Liu, 2021. "The nexus of tourism, renewable energy, income, and environmental quality: an empirical analysis of Pakistan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(10), pages 14854-14877, October.
    17. Ernest Miguélez & Rorina Moreno, 2012. "“What attracts knowledge workers? The role of space, social connections, institutions, jobs and amenities”," AQR Working Papers 201203, University of Barcelona, Regional Quantitative Analysis Group, revised Feb 2012.
    18. Kizito Uyi Ehigiamusoe, 2021. "The nexus between tourism, financial development, and economic growth: Evidence from African countries," African Development Review, African Development Bank, vol. 33(2), pages 382-396, June.
    19. Ioannis Kostakis, 2020. "Is Tourism a Key Factor for Economic Growth? Fresh Evidence from South Europe Using Panel Cointegration and PVAR Analyses," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 6(2), pages 123-138, December.
    20. Brida, Juan Gabriel & Pereyra, Juan Sebastián & Such, María Jesús & Pulina, Manuela, 2011. "Causalidad entre turismo y crecimiento económico de largo plazo: una revisión crítica de la literatura econométrica [Causality between tourism and long-term economic growth: a critical review of th," MPRA Paper 37332, University Library of Munich, Germany, revised 2011.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ejn:ejefjr:v:8:y:2020:i:2:p:68-84. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Esra Barakli (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.