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A further step into the ELGH and TLGH for Spain and Italy

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  • Cortes-Jimenez, Isabel
  • Pulina, Manuela

Abstract

Nowadays many developing countries focus on economic policies for promoting international tourism and exports expansion as a potential source of economic growth of the country. However, the understanding of the relationship between exports and economic growth is still ongoing. When treating the relationship between tourism and economic growth, considering tourism as a non-traditional export few studies have been published to date. This paper has the objective to assess if exports and tourism have really promoted growth by means of the export-led growth hypothesis (ELGH) and the tourism-led growth hypothesis (TLGH). The cases under analysis are Spain and Italy, two of the most important countries worldwide regarding the expansion of tourism. Cointegration techniques and the multivariate Granger causality test are applied. Results reveal that exports cause economic growth in the long-term for both countries, whilst only for Spain tourism appears as a factor which influences economic growth in the long-run.

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  • Cortes-Jimenez, Isabel & Pulina, Manuela, 2006. "A further step into the ELGH and TLGH for Spain and Italy," Natural Resources Management Working Papers 12137, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemnr:12137
    DOI: 10.22004/ag.econ.12137
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    Cited by:

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    2. Raza, Syed Ali & Jawaid, Syed Tehseen, 2013. "Terrorism and tourism: A conjunction and ramification in Pakistan," Economic Modelling, Elsevier, vol. 33(C), pages 65-70.
    3. Brida, Juan Gabriel & Barquet, Andrea & Risso, Wiston Adrián, 2009. "Causality between Economic Growth and Tourism Expansion: Empirical Evidence from Trentino - Alto Adige," MPRA Paper 25316, University Library of Munich, Germany, revised 14 Dec 2009.
    4. Salih Katircioğlu, 2010. "Research Note: Testing the Tourism-Led Growth Hypothesis for Singapore – An Empirical Investigation from Bounds Test to Cointegration and Granger Causality Tests," Tourism Economics, , vol. 16(4), pages 1095-1101, December.
    5. Hasan Murat Ertugrul & Fatih Mangir, 2015. "The tourism-led growth hypothesis: empirical evidence from Turkey," Current Issues in Tourism, Taylor & Francis Journals, vol. 18(7), pages 633-646, July.
    6. 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.
    7. Nikeel Kumar & Ronald Ravinesh Kumar & Radika Kumar & Peter Josef Stauvermann, 2020. "Is the tourism–growth relationship asymmetric in the Cook Islands? Evidence from NARDL cointegration and causality tests," Tourism Economics, , vol. 26(4), pages 658-681, June.
    8. Aviral Kumar Tiwari, 2011. "Tourism, Exports and FDI as a Means of Growth: Evidence from four Asian Countries," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(40), pages 131-151, June.
    9. Osinubi, Tolulope Temilola & Osinubi , Olufemi Bankole, 2020. "Inclusive Growth in Tourism-led Growth Hypothesis: Evidence from Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 8(2), July.
    10. Stefan F. Schubert, 2016. "A short-run model of a two-sector economy with tourism and unemployment," Tourism Economics, , vol. 22(4), pages 763-778, August.
    11. Schubert, Stefan Franz & Brida, Juan Gabriel, 2009. "A Dynamic Model of Economic Growth in a Small Tourism Driven Economy," MPRA Paper 16737, University Library of Munich, Germany.
    12. repec:ebl:ecbull:v:3:y:2008:i:21:p:1-8 is not listed on IDEAS
    13. Noor-e-Saher, 2011. "Impact of Oil Prices on Economic Growth and Exports Earning: In the Case of Pakistan and India," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(40), pages 117-151, June.

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    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other

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