Is the tourism‐led growth hypothesis stable for Malaysia? A note

Lean, Hooi Hooi; Tang, Chor Foon

doi:10.1002/jtr.759

Cited by 119 publications

(89 citation statements)

References 21 publications

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“…First, the tourismeconomic growth relationship is not stable over time in terms of magnitude. Such findings are in line with those by Lean and Tang (2010), Arslanturk et al (2011) and Tang and Tan (2013), for Malaysia and Turkey. More crucially, though, we provide novel evidence that, not only the magnitude but also the direction of this economic growth and tourism growth relationship changes over time.…”

Section: Resultssupporting

confidence: 92%

“…These findings confirm those by (Lean and Tang, 2010), (Arslanturk et al, 2011) and (Tang and Tan, 2013), who report similar results for Malaysia and Turkey. Hence, a question that arises naturally, is whether the direction of the said relationship remains stable over time; a question that has not been largely answered by the literature yet.…”

Section: Spillover Plotssupporting

confidence: 92%

“…This is the main contribution of this study, as previous studies on the time-varying fluctuations concern only the magnitude of this relationship and not its direction (see, for instance, Lean and Tang, 2010;Arslanturk et al, 2011;Tang and Tan, 2013). Second, the aforementioned relationship is also extremely economic eventdependent, as it is influenced by the Great Recession of 2007 and the ongoing Eurozone debt crisis that begun in 2010.…”

Section: Introductionmentioning

confidence: 86%

“…More importantly, the examination of the said relationship in a dynamic setup has been largely ignored, given that the aforementioned studies are conducted on a static environment. It is only recently that Lean and Tang (2010), Arslanturk et al (2011) andTang andTan (2013) challenged the stability of the tourism-economic growth relationship, showing that it changes over time.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

How strong is the linkage between tourism and economic growth in Europe?

2015

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In this study, we examine the dynamic relationship between tourism growth and economic growth, using a newly introduced spillover index approach. Based on monthly data for 10 European countries over the period 1995-2012, our analysis reveals the following empirical regularities. First, the tourism-economic growth relationship is not stable over time in terms of both magnitude and direction, indicating that the tourism-led economic growth (TLEG) and the economic-driven tourism growth (EDTG) hypotheses are time-dependent. Second, the aforementioned relationship is also highly economic event-dependent, as it is influenced by the Great Recession of 2007 and the ongoing Eurozone debt crisis that began in 2010. Finally, the impact of these economic events is more pronounced in Cyprus, Greece, Portugal and Spain, which are the European countries that have witnessed the greatest economic downturn since 2009. Plausible explanations of these results are provided and policy implications are drawn.

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Section: Resultssupporting

confidence: 92%

Section: Spillover Plotssupporting

confidence: 92%

Section: Introductionmentioning

confidence: 86%

Section: Introductionmentioning

confidence: 99%

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How strong is the linkage between tourism and economic growth in Europe?

2015

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“…The probable explanation of the inconclusive results is that the most studies are constricted to static analyses and country specific. However, recently, Tang and Tan (2013), Arslanturk, et al, (2011) and Lean and Tang (2010) question the stability of the tourism-economic growth association over time, only for Malaysia and Turkey and argue that the relationship between these two series may adjust due to the structural economic changes in the economy. Hence, it is crucial to extend this line of research in other countries.…”

Section: Literature Reviewmentioning

confidence: 99%

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

Sharif

Saha

Loganathan³

2017

Tourism Analysis

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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.

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Pharmaceutical expenditure and gross domestic product: Evidence of simultaneous effects using a two‐step instrumental variables strategy

Shaikh

Gandjour

2018

Health Economics

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This paper estimates the income elasticity of government pharmaceutical spending and assesses the simultaneous effect of such spending on gross domestic product (GDP). Using a panel dataset for 136 countries from 1995 to 2006, we employ a two‐step instrumental variable procedure where we first estimate the effect of GDP on public pharmaceutical expenditure using tourist receipts as an instrument for GDP. In the second step, we construct an adjusted pharmaceutical expenditure series where the response of public pharmaceutical expenditure to GDP is partialled out and use this endogeneity adjusted series as an instrument for pharmaceutical expenditure. Our estimations show that GDP has a strong positive impact on pharmaceutical spending with elasticity in excess of unity in countries with low spending on pharmaceuticals and countries with large economic freedom. In the second step, we find that when the quantitatively large reverse effect of GDP is accounted for, public pharmaceutical spending has a negative effect on GDP per capita particularly in countries with limited economic freedom.

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Is the tourism‐led growth hypothesis stable for Malaysia? A note

Cited by 119 publications

References 21 publications

How strong is the linkage between tourism and economic growth in Europe?

How strong is the linkage between tourism and economic growth in Europe?

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

Pharmaceutical expenditure and gross domestic product: Evidence of simultaneous effects using a two‐step instrumental variables strategy

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