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A dynamic multidimensional Granger causality based on wavelet decomposition analysis of the tourism and economic growth in China

Author

Listed:
  • Hung-Che Wu
  • Tsung-Pao Wu
  • Shu-Bing Liu
  • Chien-Ming Wang
  • Yi Zheng
  • Shaodian Chu
  • Ananda Sabil Hussein

Abstract

This study employs an innovative multimodal approach, integrating Granger causality analysis with wavelet decomposition, to explore the intricate relationship between China’s tourism sector and its economic development spanning from 1995 to 2022. The primary aim is to uncover the causal dynamics between the advancement of tourism and the expansion of the economy across various temporal scopes and dimensions. Through rigorous panel bootstrap causality examinations and meticulous assessments for cross-sectional dependence and slope homogeneity, this research underscores a dynamic and symbiotic connection between China’s economic progress and the growth of its tourism industry, particularly emphasising the enduring significance of this relationship over the short-run, mid-run, and long-run.

Suggested Citation

  • Hung-Che Wu & Tsung-Pao Wu & Shu-Bing Liu & Chien-Ming Wang & Yi Zheng & Shaodian Chu & Ananda Sabil Hussein, 2026. "A dynamic multidimensional Granger causality based on wavelet decomposition analysis of the tourism and economic growth in China," Current Issues in Tourism, Taylor & Francis Journals, vol. 29(2), pages 274-291, January.
    • Handle: RePEc:taf:rcitxx:v:29:y:2026:i:2:p:274-291
    DOI: 10.1080/13683500.2024.2417710
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