A Harrodian Model that fits the Tourism-led Growth Hypothesis for Tourism-based Economies

Pérez-Montiel, Jose; Asenjo, Oscar Dejuán; Erbina, Carles Manera

doi:10.54055/ejtr.v27i.2126

Cited by 8 publications

(3 citation statements)

References 53 publications

(71 reference statements)

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“…A vast amount of theoretical and empirical approaches has endeavored to unravel the complex relation connecting tourism and economic growth. Theoretical investigations can be broadly classified into four key approaches; the "short-run" perspective (Cooper et al, 2008), the "longrun" perspective (Pérez-Montiel et al, 2021); the input-output model or general equilibrium approach (Blake, 2006;Copeland, 1991;Dwyer 2004Dwyer , 2006Sinclair, 2010); and the approach employing exogenous (Romer, 1987) or endogenous (Lucas, 1988) growth models (Candela & Cellini, 1997;Hazari, 1995;Lanza, A. & Pigliaru, 2000;Lanza & Pigliaru, 1995;Lozano, 2008).…”

Section: Literature Reviewmentioning

confidence: 99%

Do tourism, economic complexity and globalization affect economic growth? New empirical evidence in the context of TALC theory and accounting for cross sectional dependence

Panagiotou,

Katrakilidis

2023

Econ Bus Lett

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This paper investigates the Tourism Led Growth (TLG) relationship, incorporating the law of economic returns and the Tourism Area Life Cycle (TALC) theory, along with economic complexity and globalization. To measure tourism accurately, principal components analysis is employed, integrating five tourism-specific variables for 127 countries spanning the period from 1995 to 2020. The empirical analysis utilizes advanced panel dynamic models that account for cross-sectional dependence, yielding robust evidence of a nonlinear TLG relationship. Our findings reveal an inverted U-shaped curve characterizing the TLG relationship in both the short and long run, highlighting distinct impacts of tourism specialization in each time frame. Specifically, higher levels of tourism specialization in the short run can lead to diminishing returns to scale in the long run. Furthermore, our analysis demonstrates that cultural globalization positively facilitates the TLG relationship, while economic complexity exerts a negative influence on the impact of tourism on economic growth.

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Section: Literature Reviewmentioning

confidence: 99%

Do tourism, economic complexity and globalization affect economic growth? New empirical evidence in the context of TALC theory and accounting for cross sectional dependence

Panagiotou,

Katrakilidis

2023

Econ Bus Lett

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“…In this paper, we will test the first hypothesis. A possible formal theoretical framework supporting the TLG hypothesis, based on a multiplier-accelerator growth model, has been proposed by Pérez-Montiel et al (2021).…”

Section: Literature Reviewmentioning

confidence: 99%

Tourism and regional growth in the Carpathian Euroregion – a panel data approach

Výrostová¹,

Hrabovská

Dioba

2021

EJTR

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The paper focuses on the identification of the relationship between tourism and economic growth of the Carpathian Euroregion located across seven borders of Central and Eastern European countries (Slovakia, Ukraine, Poland, Hungary, and Romania). By analysing the relationship between tourism and economic growth within the region, the paper quantifies the positive impact of tourism on GDP growth per capita. To test for the existence and strength of such a relationship, we use a panel econometric model based on conditional β-convergence. The results confirm the tourism-led growth hypothesis, and determine the extent of regional disparities in tourism activities between different parts of the Carpathian Euroregion, observed during the increase in tourist attractiveness between 2005 and 2015. For Ukraine, where political instability has led to a decrease in the total number of visiting tourists, we show that the dynamics for its part of the Carpathian Euroregion are markedly different, as it has benefited from the changing structure of tourist flows.

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“…To explicate the process of economic growth and describe the origin of output growth, one can distinguish between two basic approaches (Pérez-Montiel et al, 2021). The supply-side explanation of economic growth rests on neoclassical models of growth and models of endogenous economic growth (Valdés, 1999).…”

Section: Introductionmentioning

confidence: 99%

Estimating the Output Response to Tourism Spending in the Mediterranean Countries

Senekovič¹,

Bekő²

2021

6th International Thematic Monograph: Modern Management Tools and Economy of Tourism Sector in Present Era

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The aim of this chapter is, first, to assess the impact of changes in tourism spending on economic activity in 16 Mediterranean countries and, second, to examine whether country-specific characteristics affect the size of tourism spending multipliers. Based on aggregate SVAR model estimates, the authors confirmed a statistically significant response of output to the shock in tourism spending in 88% of the analyzed cases at least over the part of the forecast horizon. In 56% of the examined cases, the value of the respective multiplier is above two. The existence of the multiplier mechanism is documented in 13 economies for domestic and foreign tourism spending within a particular forecast horizon. Tourism spending generates stronger GDP growth in countries that record a higher standard of living, have a better state of road and railroad transport infrastructure, and, to some extent, display higher consumer price levels of hotels and restaurants.

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A Harrodian Model that fits the Tourism-led Growth Hypothesis for Tourism-based Economies

Cited by 8 publications

References 53 publications

Do tourism, economic complexity and globalization affect economic growth? New empirical evidence in the context of TALC theory and accounting for cross sectional dependence

Do tourism, economic complexity and globalization affect economic growth? New empirical evidence in the context of TALC theory and accounting for cross sectional dependence

Tourism and regional growth in the Carpathian Euroregion – a panel data approach

Estimating the Output Response to Tourism Spending in the Mediterranean Countries

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