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Tourism and economic growth: A global study on Granger causality and wavelet coherence

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  • Chathuni Wijesekara
  • Chamath Tittagalla
  • Ashinsana Jayathilaka
  • Uvinya Ilukpotha
  • Ruwan Jayathilaka
  • Punmadara Jayasinghe

Abstract

This paper empirically investigates the relationship between tourism and economic growth by using a panel data cointegration test, Granger causality test and Wavelet coherence analysis at the global level. This analysis examines 105 nations utilising panel data from 2003 to 2020. The findings indicates that in most regions, tourism contributes significantly to economic growth and vice versa. Developing trade across most of the regions appears to be a major influencer in the study, as a bidirectional association exists between trade openness and economic growth. Additionally, all regions other than the American region showed a one-way association between gross capital formation and economic growth. Therefore, it is crucial to highlight that using initiatives to increase demand would advance tourism while also boosting the economy.

Suggested Citation

  • Chathuni Wijesekara & Chamath Tittagalla & Ashinsana Jayathilaka & Uvinya Ilukpotha & Ruwan Jayathilaka & Punmadara Jayasinghe, 2022. "Tourism and economic growth: A global study on Granger causality and wavelet coherence," PLOS ONE, Public Library of Science, vol. 17(9), pages 1-21, September.
    • Handle: RePEc:plo:pone00:0274386
    DOI: 10.1371/journal.pone.0274386
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    Cited by:

    1. Thaveesha Jayawardhana & Ruwan Jayathilaka & Thamasha Nimnadi & Sachini Anuththara & Ridhmi Karadanaarachchi & Kethaka Galappaththi & Thanuja Dharmasena, 2023. "The cost of aging: Economic growth perspectives for Europe," PLOS ONE, Public Library of Science, vol. 18(6), pages 1-20, June.
    2. Shenali Nupehewa & Sachintha Liyanage & Deshan Polkotuwa & Madhurshi Thiyagarajah & Ruwan Jayathilaka & Anuja Lokeshwara, 2022. "More than just investment: Causality analysis between foreign direct investment and economic growth," PLOS ONE, Public Library of Science, vol. 17(11), pages 1-28, November.
    3. Sanduni Lakshani & Chanuka Sandaruwan & Chanaka Fernando & Gayan Vidyapathirana & Ruwan Jayathilaka & Sumudu Munasinghe, 2023. "From short to long term: Dynamic analysis of FDI and net export in global regions," PLOS ONE, Public Library of Science, vol. 18(9), pages 1-34, September.

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