Does Tourism Sustain Economic Growth? Wavelet-Based Evidence From the United States

Abstract

This study explores the relationship between tourism development and economic growth in high tourist arrival country such as the United States of America (USA) by adopting the wavelet transform approach using monthly data over the period 1996M01-2015M08. Three innovative techniques that are continuous wavelet, wavelet coherence power spectrum and wavelet based Granger causality that consider the decomposition of time-series at different time frequencies, are utilized to conduct the study. The results of autoregressive distributed lag and combine cointegration tests show that there is a significant long-run relationship occurs between tourism development and economic growth in USA. Furthermore, the results indicate that there is a unidirectional causal influence of economic growth on tourism development in the short-run whereas, in the long-run the opposite causal relationship is evident in USA. Thus it can be recommended that government needs to increase and promote tourism demand and further providing and nurturing the expansion of tourism supply with the advancement of economic growth.

Causality between European Economic Policy Uncertainty and Tourism Using Wavelet-Based Approaches

“…Nunes 2009). To our knowledge, limited works so far have applied wavelet analysis into the relationship between European EPU and tourism activities, with an exception of Sharif, Saha, and Loganathan (2017), who assess wavelet transform context structures between tourism development and economic growth. The results indicate that there is a unidirectional causal influence of economic growth on tourism development in the short run and that there is also a unidirectional causal influence of tourism development on economic growth in the United States in the long run.…”

“…Applications of wavelet analysis in economics and finance have been introduced by Goffe (1994) and Ramsey and Lampart (1998a, 1998b); however, they have been performed popularly until recent years by focusing on the comovement between stock markets as well as between energy commodities and macroeconomy (e.g., Aguiar-Conraria and Soares 2011; Graham and Nikkinen 2011; Loh 2013; McCarthy and Orlov 2012; Rua and Nunes 2009). To our knowledge, limited works so far have applied wavelet analysis into the relationship between European EPU and tourism activities, with an exception of Sharif, Saha, and Loganathan (2017), who assess wavelet transform context structures between tourism development and economic growth. The results indicate that there is a unidirectional causal influence of economic growth on tourism development in the short run and that there is also a unidirectional causal influence of tourism development on economic growth in the United States in the long run.…”

Especialización turística en destinos emergentes latinoamericanos: Explorando el algoritmo para un longevo e inclusivo desarrollo socioeconómico

“…Por su parte, también es señalado que es el desarrollo de sectores distintos al turismo el que contribuye al desarrollo socioeconómico de un país, y como desencadenante de este desarrollo, tiene lugar la actividad turística en dicho destino (Lin et al, 2019;Nene & Taivan, 2017;Sharif et al, 2017).…”

Doğrudan Yabanci Yatirim Ve Turi̇zm Sektörü Arasindaki̇ İli̇şki̇: Jamai̇ka Örneği̇

“…Consequently, there will be greater linkages of TFDI with the local economy, resulting in a positive impact" (UNCTAD, 2008a). In this respect, FDI serves as a catalyst to improve the tourism sector in the host country by utilizing the investment coming from abroad to boost its tourism services resulting in the construction of more hotels and other tourist resorts consequently improving accommodation and transport facilities (Sharif et al, 2017).…”