Is the Tourism-Led Growth Hypothesis Valid for Višegrad Group Countries?

Abstract

The tourism sector represents one of the most essential segments of the world economy. This paper aims to identify the effects of tourism indicators on economic growth in terms of tourism share, international tourism arrivals and tourism employment. The subject of the paper is evaluating the impact of the tourism sector on economic growth in selected Višegrad group countries (Czechia, Hungary, Poland and Slovakia) for the period 2008-2018. The empirical findings show that the tourism sector has a significant and positive effect on economic growth in these countries for the observed period. The results of the panel fixed effects model reflect that governments in Višegrad group countries should increase the tourism sector share in their economies in order to enable positive and lucrative implications for economic development.

Estimating International Tourism Indicators in Context of Macroeconomic Stability and Fiscal Sustainability in the Republic of Serbia

“…(2022) indicated that tourism's contribution to economic development has been scientifically verified, and this relation can be confirmed by the Tourism-Led-Growth Hypothesis (TLGH). Consequently, many theoretical and empirical researchers have analyzed the relationship between tourism and economic growth (Antonakakis et al, 2019;Arslanturk et al, 2011;Bouzahzah & El Menyari, 2013;Brida et al, 2014Brida et al, , 2020Demiröz & Ongan, 2005;Gričar et al, 2021;Gunduz & Hatemi-J, 2005; Hristov Macroeconomic Stability and Fiscal Sustainability in the Republic of Serbia Stančić et al, 2022;Kadir & Karim, 2012;Khan et al, 2020;Kim et al, 2006;Lean & Tang, 2010;Lee & Chang, 2008;Lee, 2021;Mirović et al, 2021;Perles-Ribes et al, 2017;Pratt, 2015;Shahzad et al, 2017;Sokhanvar et al, 2018;Songling et al, 2019;Tafel & Szolnoki, 2020;Wu & Wu, 2018;Wu et al, 2022). If the mentioned studies are briefly analyzed, Demiröz and Ongan (2005) investigated the impact of international tourism receipts on the long-run economic growth of Turkey from 1980 to 2004.…”

“…Empirical findings have manifested that a 1% increase in economic growth improves tourism by 1.9% in the long term while the same increase in economic growth enhances tourism by 1.32% in the short term. Mirović et al (2021) have identified the positive impact of tourism on economic growth in Višegrad group countries (Czechia, Hungary, Poland and Slovakia) from 2008 to 2018. When it comes to European Union, Haller et al (2020) have found a positive and direct causality between tourism and economic growth in EU member states from 2012 to 2018.…”