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Empirical assessment of the tourism-led growth hypothesis: the case of the ÒTirol-SŸdtirol-TrentinoÓ Europaregion

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  • Juan Gabriel Brida
  • Diego Giuliani

Abstract

The use of cointegration tests has become very popular in the empirical analysis of the tourism-led growth hypothesis (TLGH). It was first introduced in the tourism economics literature by Balaguer and Cantavella-Jordˆ (2002) and then popularized by many researches which tried to assess the causal long-run relationship between international tourism and economic growth. The vast majority of these studies analyzed countries where tourism is one of the most important sector of the national economy and, in most cases, the TLGH has been validated. With respect to previous contributions to the literature, this paper investigates the TLGH for subnational transfrontier economies, namely the three administrative areas forming the ÒTirol-SŸdtirol-TrentinoÓ Europaregion. The direct comparison amongst the results for across-the-border regions which have a similar international tourism market provides new insights in the understanding of tourism-led growth hypothesis. Length: 25 pages

Suggested Citation

  • Juan Gabriel Brida & Diego Giuliani, 2012. "Empirical assessment of the tourism-led growth hypothesis: the case of the ÒTirol-SŸdtirol-TrentinoÓ Europaregion," DISA Working Papers 2012/02, Department of Computer and Management Sciences, University of Trento, Italy, revised Mar 2012.
    • Handle: RePEc:trt:disawp:2012/02
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    1. 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.

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    Keywords

    economic growth; tourism development; Johansen cointegration test; Granger causality;
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