Evaluating the Contribution of Tourism to Economic Growth

Brida, Juan Gabriel; Pereyra, Juan Sebastián; Devesa, María Jesús Such

doi:10.1080/13032917.2008.9687079

Cited by 39 publications

(28 citation statements)

References 12 publications

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“…authors use a different methodology than ours, which is mainly adopted by (Brida et al, 2008) with minor modifications. Despite this, our results suggest strong positive impact of tourism in the economic growth of the Western Balkan countries.…”

Section: Olsmentioning

confidence: 99%

The Impact of Tourism on Economic Growth in the Western Balkan Countries: An Empirical Analysis

Selimi¹,

Sadiku²,

Sadiku³

2017

IJBESAR

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Purpose:The purpose of this research paper is to empirically analyse the effects of tourism on economic growth in Western Balkan countries (Albania, Bosnia and Herzegovina, Croatia, FYROM, Montenegro and Serbia). Design/Methodology/Approach: The empirical analysis consists of 17-year panel data of 6 countries over the period 1998 to 2014. Several models are analysed using the panel regression econometric techniques. The study investigates the random and fixed effects, as well as individual heterogeneity across those countries. Also, the Hausman Taylor IV estimator is used as the most appropriate model for this analysis. The real income per capita of the sample countries is modelled as dependent on the lagged income per capita, tourist arrivals, tourism receipts, FDI stock, exports and government expenditures. Findings:The estimation results in all types of models, and indicate that tourism has a positive and significant impact on economic growth in the Western Balkan countries. The Hausman Taylor IV model suggests that for every 1% increase of tourist arrivals, the output will increase approximately by 0.08%. Research limitations/implicationsAlthough the Hausman Taylor IV model performs well, the results should be interpreted with caution. The analysis has its limitations; firstly, the total number of observations is relatively small for a panel regression analysis; secondly, the problem of endogenity is not completely avoided. However, the study implies that these countries should enhance efforts for joint tourism sector policies to engender economic sustainability. Originality/Value: -To our best knowledge, this is the first attempt of estimating the effects of tourism on economic growth in the Western Balkan countries using the Hausman Taylor IV model JEL ClassificationsF43, Z32, C33

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Section: Olsmentioning

confidence: 99%

The Impact of Tourism on Economic Growth in the Western Balkan Countries: An Empirical Analysis

Selimi¹,

Sadiku²,

Sadiku³

2017

IJBESAR

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“…Other CIPs were built such as Los Cabos, Vallarta and Ixtapa, but none were as successful as Cancún (Hiernaux, 1999, p. 133). Forty years after breaking ground in Cancún, tourism produces 5% of Mexico's GDP in real and constant terms (Brida, Pereyra, & Such-Devesa, 2008) and Cancún's airport receives more international air passengers than any other (SCT, 1990(SCT, -2011.…”

Section: Reinstitutionalizationmentioning

confidence: 99%

Myths of tourism institutionalization and Cancún

Ambrosie

2015

Annals of Tourism Research

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“…Based on the methodology used by Brida et al (2008) for calculating the real GDP growth rate per capita ( ) at constant prices, we have used the following formula as a measure of economic growth:…”

Section: Methodsmentioning

confidence: 99%

“…The two most commonly used methodologies for performing such analyses are TSA (Tourism Satellite Account) and CGE (Computable General Equilibrium) (Dupeyras & MacCallum, 2013). Namely, CGE model takes into account the fact that tourism is one of many sectors (constituting the economy of a country) that is struggling with various other sectors to obtain scarce (state) funds (Dwyer et al 2003) (Brida et al 2008). Numerous authors have examined and written about the CGE model in their research and scientific papers (primarily the effects of tourism impact growth on the key macroeconomic indicators, thus pointing to the tendency of "excluding" other industry sectors.…”

Section: Researchmentioning

confidence: 99%

“…Also, research indicates that contribution of tourism sector to the overall economic growth is much more modest than forecasted by the input-output analysis. Brida et al (2008) have implemented the modified methodology of Ivanov and Webster to Uruguay, Brazil, Mexico and Argentina. Namely, Ivanov and Webster (2007) presented their methodology for measuring tourism sector contribution to the overall economic growth of a country, on a sample comprising Cyprus, Greece and Spain.…”

Section: Researchmentioning

confidence: 99%

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