Causality between tourism and economic growth nexus

Wu, Tsung-Pao; Wu, Hejun; Wu, Yu Yu; Liu, Yatian; Wu, Su-Tsung

doi:10.1080/19388160.2020.1801545

Cited by 24 publications

(10 citation statements)

References 65 publications

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“…Tung (2021) investigated the tourism-led growth hypothesis (TLGH) using Johansen-Fisher test and ordinary least square (OLS) in some transition countries. The result indicated that both tourism revenue and tourist arrivals contribute to the growth confirming TLGH.The most recent study of Wu et al (2022) states that there is strong evidence nexus between international tourism receipts, international tourist arrivals, capital formation, and real gross domestic product variables in the temporal domain.…”

Section: Literature Review 1 Tourism and Economic Growth Nexusmentioning

confidence: 92%

Is There a Long-Run Relationship Between Tourist Arrivals and Economic Growth in Nepal? An Empirical Assessment Based on Ardl Bounds Test Approach

KHANAL¹,

KHANAL²

2022

GTG

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The tourism industry has become a significant economic contributor to a number of countries worldwide. Until COVID-19, tourism was the world's largest and fastest-growing business. The importance of tourist arrivals and the examination of their effects has triggered curiosity among different researchers, as tourism helps in balance of payment and boosts the overall GDP of the nation. Thus, this paper aimed to examine the long-run relationship among the number of tourist arrivals per year and economic growth (proxied by GDP). The study used annual secondary data collected from World Development Indicators between 1995 and 2019. Cointegration test (ARDL bounds test) was applied to check the long-run relationship among the variables. The result shows that a 1% increase in tourist arrivals, in the long run, is associated with a 1.15% increase in GDP at a (p<0.05) significance level, other things remaining constant. The evidence from ARDL bounds cointegration test confirms that tourist arrivals have a long-run relationship with a significant impact on GDP in Nepal. Thus, this study recommends some policy implications like the allocation of government funds for infrastructure and tourism development is critical since these investments benefit the tourism industry and overall GDP of the country.

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Section: Literature Review 1 Tourism and Economic Growth Nexusmentioning

confidence: 92%

Is There a Long-Run Relationship Between Tourist Arrivals and Economic Growth in Nepal? An Empirical Assessment Based on Ardl Bounds Test Approach

KHANAL¹,

KHANAL²

2022

GTG

View full text Add to dashboard Cite

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“…Furthermore, a study based on 11 Asian regions discovers a close link between real international tourist revenues, capital formation, and GDP, confirming the tourism industry’s contribution to GDP [ 10 ]. Another study that looked at the relationship between tourism and economic growth based on tourist arrivals found that tourism is a good driver of economic growth [ 11 ].…”

Section: Introductionmentioning

confidence: 94%

“…However, the author noted that in order to generalise the study’s findings, it is necessary to investigate the TLGH under economic conditions of numerous nations. Examining the most recent study in further detail, Wu, Wu [ 10 ] used a multivariate panel Granger causality test to show a growth hypothesis between real GDP and real international tourism receipt in China, Cambodia, and Malaysia. However, an opposite growth hypothesis has been validated in the Philippines, Hong Kong, Indonesia, and South Korea.…”

Section: Literature Reviewmentioning

confidence: 99%

Tourism and economic growth: A global study on Granger causality and wavelet coherence

et al. 2022

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This paper empirically investigates the relationship between tourism and economic growth by using a panel data cointegration test, Granger causality test and Wavelet coherence analysis at the global level. This analysis examines 105 nations utilising panel data from 2003 to 2020. The findings indicates that in most regions, tourism contributes significantly to economic growth and vice versa. Developing trade across most of the regions appears to be a major influencer in the study, as a bidirectional association exists between trade openness and economic growth. Additionally, all regions other than the American region showed a one-way association between gross capital formation and economic growth. Therefore, it is crucial to highlight that using initiatives to increase demand would advance tourism while also boosting the economy.

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“…The last and not the least group of authors argue on the importance of tourism on economic development. In this line of research, some authors argue that tourism enhances economic growth (Fayissaet al, 2008;Nissan et al, 2011;Nunkoo et al, 2020;Rasool et al, 2021;Wu et al, 2022). According to these authors, international tourism would augment economic growth through its ability to enhance foreign exchange reserve, as a result, stimulates investments in infrastructures and human capital, leading to economic competiveness.…”

Section: Empirical Evidencementioning

confidence: 99%