International tourism and economic development in South Africa: a Granger causality test

Akinboade, Oludele Akinloye; Braimoh, Lydia A.

doi:10.1002/jtr.743

Cited by 161 publications

(96 citation statements)

References 30 publications

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“…Sarmidi and Saleh (2010) cross-country analysis (2009) showed a casual links between tourism and trade (export and import). Akinboade and Braimoh (2010) illustrated a causality links between real export and international tourism in long term.…”

Section: Resultsmentioning

confidence: 99%

Modeling and Forecasting of International Tourism Demand in ASEAN Countries

Karimi¹,

Faroughi²,

Rahim³

2015

American Journal of Applied Sciences

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This study attempts to find the best model to forecast international tourism demand using a series of key macroeconomic variables in ASEAN countries. Generally, we find that generalized Poisson regression model is the best one for estimating long-run international tourism demand. In addition, we find that inflation and real exchange rate have negative relationship with international tourism demand. On the other hand, foreign direct investment and openness of trade have positive relationship with international tourism demand. Cointegration test result shows that there is a long-run relationship between variables.

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Section: Resultsmentioning

confidence: 99%

Modeling and Forecasting of International Tourism Demand in ASEAN Countries

Karimi¹,

Faroughi²,

Rahim³

2015

American Journal of Applied Sciences

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“…However, despite using research methodologies based on time series and/or panel data analytical techniques, empirical studies have shown mixed or even inconsistent results in terms of supporting the tourism-led economic growth hypothesis. Examples of studies that analyze the relationship between tourism and economic growth employing the Granger causality test with time series data analysis include Balaguer and Cantavella-Jorda [9], Durbarry [10], Gunduz and Hatemi-J [11], Brida, Carrera, and Risso [12], Chen and Chiou-Wei [13], Belloumi [16], Akinboade and Braimoh [17], Tang and Abosedra [18], and Tang and Tan [19]. These studies provide evidence in support of the tourism-led growth hypothesis.…”

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confidence: 99%

Is Tourism Development a Sustainable Economic Growth Strategy in the Long Run? Evidence from GCC Countries

Alhowaish

2016

Sustainability

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Abstract:The main objective of this study is to investigate the causal relationship between tourism development and economic growth in Gulf Cooperation Council (GCC) countries in a multivariate model, using panel data for the period 1995-2012. The study adopts a panel Granger causality analysis approach to assess the contribution of tourism to economic growth in GCC countries as a whole, and in each individual country. In the case of GCC countries as a whole, the results show a one-way Granger causality, from economic growth to tourism growth. Furthermore, Kuwait, Saudi Arabia, Qatar, and the United Arab Emirates follow the path of economy-driven tourism growth, as hypothesized. The reverse hypothesis (i.e., tourism-led growth hypothesis) holds true for Bahrain, while there is no causal relationship between tourism and economic growth in the case of Oman.

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“…In a key study showing the positive economic impact of tourism in Sub-Saharan Africa, Akinboade and Braimoh (2010) found that both in the short-and long-run, tourism receipts affect economic growth in South Africa; not the other way round. Arora and Vamvakidis (2010) also presented evidence of a direct correlation between tourism and GDP in South Africa, with the tourism variable Granger-causing real GDP.…”

Section: Literaturementioning

confidence: 99%

Tourism: the untapped goldmine in the Gold Coast

2016

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Purpose -This study examines the economic impact of international tourism and currency valuation in the West African country of Ghana. Previously known as the Gold Coast due to its vast gold reserves, Ghana is a developing economy with a sharply devalued currency and a heavy reliance on imports. Design -The paper shows that Ghana's weak currency can be leveraged to boost international tourism and with that, economic growth. This view of tourism-led growth is in part supported by evidence in which tourism receipts are a major source of foreign exchange earnings for a number of developing economies. Methodology -The relationship between economic growth, tourism receipts, and currency valuation is examined using a vector error correction model. This approach offers an opportunity to not only confirm the existence of a dynamic relationship among the time series but also, the existence of causality both in the short-and long-run. Findings -Cointegration tests confirm the existence of a long-run relationship among the variables. Both tourism and exchange rate are found to positively impact economic growth. Also, there is a long-run causality from exchange rate to tourism receipts. Originality -This is the first empirical study that demonstrates the existence of causality between currency valuation and tourism using data from Sub-Saharan Africa, a region with abundant natural resources but one that remains significantly underdeveloped.

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International tourism and economic development in South Africa: a Granger causality test

Cited by 161 publications

References 30 publications

Modeling and Forecasting of International Tourism Demand in ASEAN Countries

Modeling and Forecasting of International Tourism Demand in ASEAN Countries

Is Tourism Development a Sustainable Economic Growth Strategy in the Long Run? Evidence from GCC Countries

Tourism: the untapped goldmine in the Gold Coast

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