Causality between Economic Growth and Tourism Expansion: Empirical Evidence from Trentino - Alto Adige
This paper investigates the causal relations between tourism growth, relative prices and economic expansion for the Trentino-Alto Adige/Südtirol, a region of northeast Italy bordering on Switzerland and Austria. Johansen cointegration analysis shows the existence of one cointegrated vector among real GDP, tourism and relative prices where the corresponding elasticities are positive. Tourism and relative prices are weakly exogenous to real GDP. A variation of the Granger Causality test developed by Toda and Yamamoto is performed to reveal the uni-directional causality from tourism to real GDP. Impulse response analysis shows that a shock in tourism expenditure produces a fast positive effect on growth.
|Date of creation:||08 Sep 2009|
|Date of revision:||14 Dec 2009|
|Publication status:||Published in TOURISMOS: An International Multidisciplinary Journal of Tourism 2.5(2010): pp. 87-98|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Epaminondas Panas & George Vamvoukas, 2002. "Further evidence on the Export-Led Growth Hypothesis," Applied Economics Letters, Taylor & Francis Journals, vol. 9(11), pages 731-735.
- Toda, Hiro Y. & Yamamoto, Taku, 1995. "Statistical inference in vector autoregressions with possibly integrated processes," Journal of Econometrics, Elsevier, vol. 66(1-2), pages 225-250.
- Noriko Ishikawa & Mototsugu Fukushige, 2007.
"Impacts of tourism and fiscal expenditure to remote islands: the case of the Amami islands in Japan,"
Applied Economics Letters,
Taylor & Francis Journals, vol. 14(9), pages 661-666.
- Noriko Ishikawa & Mototsugu Fukushige, 2005. "Impacts of Tourism and Fiscal Expenditure to Remote Islands: The Case of the Amami Islands in Japan," Discussion Papers in Economics and Business 05-24, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
- Lokman Gunduz & Abdulnasser Hatemi-J, 2005. "Is the tourism-led growth hypothesis valid for Turkey?," Applied Economics Letters, Taylor & Francis Journals, vol. 12(8), pages 499-504.
- Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
- Jacint Balaguer & Manuel Cantavella-Jorda, 2002.
"Tourism as a long-run economic growth factor: the Spanish case,"
Taylor & Francis Journals, vol. 34(7), pages 877-884.
- Jacint Balaguer & Manuel Cantavella-Jordá, 2000. "Tourism As A Long-Run Economic Growth Factor: The Spanish Case," Working Papers. Serie EC 2000-10, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Azmat Gani, 1998. "Macroeconomic determinants of growth in the South Pacific island economies," Applied Economics Letters, Taylor & Francis Journals, vol. 5(12), pages 747-749.
- Elias Soukiazis & Sara Proença, 2008. "Tourism as an alternative source of regional growth in Portugal: a panel data analysis at NUTS II and III levels," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 7(1), pages 43-61, April.
- Granger, C. W. J., 1988. "Some recent development in a concept of causality," Journal of Econometrics, Elsevier, vol. 39(1-2), pages 199-211.
- repec:ebl:ecbull:v:3:y:2008:i:21:p:1-8 is not listed on IDEAS
- Edgar J Sanchez Carrera & W. Adrian Risso & Juan Gabriel Brida, 2008. "Tourism's Impact on Long-Run Mexican Economic Growth," Economics Bulletin, AccessEcon, vol. 3(21), pages 1-8.
- Isabel Cortés_Jiménez & Manuela Pulina, 2006. "A further step into the ELGH and TLGH for Spain and Italy," Working Papers 2006.118, Fondazione Eni Enrico Mattei.
- Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
- Jordan Shan & Ken Wilson, 2001. "Causality between trade and tourism: empirical evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 8(4), pages 279-283.
- Johansen, Soren, 1995. "Likelihood-Based Inference in Cointegrated Vector Autoregressive Models," OUP Catalogue, Oxford University Press, number 9780198774501.
- Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
- Bichaka Fayissa & Christian Nsiah & Badassa Tadasse, 2007. "The Impact of Tourism on Economic Growth and Development in Africa," Working Papers 200716, Middle Tennessee State University, Department of Economics and Finance.
- Juan Luis Eugenio-Martín & Noelia Martín Morales & Riccardo Scarpa, 2004. "Tourism and Economic Growth in Latin American Countries: A Panel Data Approach," Working Papers 2004.26, Fondazione Eni Enrico Mattei.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:25316. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.