In this study, the linkage between tourism activity and economic development in 21 European countries is analyzed. The data are collected on an annual basis and cover the years from 1995 to 2017. The main purpose is to investigate empirically if there is a long-run connection between tourism activity and the development of the economy by applying a multivariate model. For this purpose, generalized method of moments (GMM) and Granger causality tests are applied within a panel data framework. The results reveal that tourism contributes significantly to European countries’ economic growth. Furthermore, Granger causality analysis shows a unidirectional relationship between tourism and economic development, leading to sufficient evidence for the validity of the tourism-led-growth hypothesis. Therefore, for these European countries, the tourism–led growth hypothesis is supported (meeting our expectations).
This study attempts to evaluate the energy and carbon footprint within the framework of international environmental treaties and the efforts made by 11 large polluting countries to mitigate climate change. The econometric methodology accounts for the presence of cross-sectional dependence while it employs second-generation panel unit root tests and cointegrated relationships. To secure the robustness of our findings, we conduct an ARDL approach employing dynamic panel data techniques. Dynamic OLS is also applied to verify the validity of the empirical results. The empirical analysis supports that the reduction in CO2 emissions can be achieved without a slowdown in economic activity for the sample countries. The findings suggest insightful policy implications for policymakers and government officials.
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