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Does Tourism Boost Economic Growth: Evidence from Italy

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  • Uzma Khan

Abstract

Purpose: Tourism plays a crucial role in enhancing the nation's welfare. Therefore, this study's core idea is to investigate tourist arrival, tourism growth, tourism expenditure, and its associated economic headway impact. Approach/Methodology/Design: Using an annual time series data from 1995-2018, capturing the effect of tourism growth, tourism expenditure on economic growth, and finally revealing the association amongst these endogenous and exogenous parameters. Findings: The unit root test analysis outcomes illustrate that all parameters become stationary when a first-order difference is considered as having a lag value of one. ADRL Bound test reveals the presence of short-run association among parameters. The outcomes of t-statistics and the Wald F-test reveal bidirectional and unidirectional causation among the parameters. Practical Implications: The study will contribute positively to the understanding of tourism and its associated effect to boost the economy. Originality/Value: The study believes to contribute positively to the understanding of the tourism sector.

Suggested Citation

  • Uzma Khan, 2020. "Does Tourism Boost Economic Growth: Evidence from Italy," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 214-222.
    • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:4:p:214-222
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    References listed on IDEAS

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    Cited by:

    1. Sana Naseem, 2021. "The Role of Tourism in Economic Growth: Empirical Evidence from Saudi Arabia," Economies, MDPI, vol. 9(3), pages 1-12, August.

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    More about this item

    Keywords

    Tourism growth; tourism expenditure; economic growth; ARDL bound test.;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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