Testing the validity of the tourism-led growth hypothesis under long-range dependence

Pérez‐Rodríguez, Jorge V.; Rachinger, Heiko; Santana-Gallego, María

doi:10.1080/13683500.2020.1744537

Cited by 17 publications

(11 citation statements)

References 64 publications

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“…To conclude, using panel cointegration methods, the case for a positive long-run relationship between tourism and economic growth is rather weak, with a slightly stronger one for the period prior to the 2007-2010 crisis. This confirms previous findings by Pérez-Rodríguez et al (2020) and is in contrast to results using standard non-fractional methods. Therefore, the positive link between tourist arrivals and economic growth is weaker for this group of high-income countries, and a positive long-run nexus between tourism and economic growth more likely exists when the economies are not suffering crises episodes.…”

Section: Estimation Resultssupporting

confidence: 92%

“…Especially, in the fractionally heterogeneous panel data model, the case for a positive long-run relationship between tourism and economic growth is rather weak, being slightly stronger for the period prior to this crisis. This confirms previous findings by Pérez-Rodríguez et al (2020) and Perles-Ribes et al (2017) that the validity of TLGH is less clear-cut during sample periods that include crisis episodes. Once enough data are available, it would be interesting to analyse the effect on the TLGH of the COVID-19 pandemic, which, as aforementioned, has heavily impacted the tourism sector.…”

Section: Discussionsupporting

confidence: 91%

“…Thus, it might lead to more accurate results. The only antecedent in the application of fractional cointegration techniques to the TLGH is the article by Pérez-Rodríguez et al (2020). It applies fractional integration and cointegration analyses to explore the validity of the TLGH but in a time-series context.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Does tourism promote economic growth? A fractionally integrated heterogeneous panel data analysis

2021

Self Cite

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In this article, we analyse whether tourism promotes economic growth using a general dynamic panel data model that incorporates individual and interactive fixed effects and allows for contemporaneous correlation in model innovations. The empirical study is based on quarterly series of GDP and tourist arrivals for 14 European countries covering the period from 1995 to 2019. Results indicate that the case for a positive long-run relationship between tourism and economic growth is rather weak, being slightly stronger for the period prior to the global economic and financial crisis from 2007 to 2010. When applying panel fractional cointegration techniques, we find evidence in favour of the tourism-led growth hypothesis (TLGH) for the full sample mainly for North European countries. For the pre-crisis period, on the other hand, we find evidence in favour of the TLGH for the relevant tourist destinations Spain and France.

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Section: Estimation Resultssupporting

confidence: 92%

Section: Discussionsupporting

confidence: 91%

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Does tourism promote economic growth? A fractionally integrated heterogeneous panel data analysis

2021

Self Cite

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“…Fourth, the neutrality hypothesis opines that tourism and economic growth have an insignificant causal relationship. Eyuboglu and Eyuboglu (2020) found an insignificant causal relationship between tourism and economic growth in nine emerging countries while Perez‐Rodriguez et al (2021) showed that tourism and economic growth have insignificant long‐run causal relationship in seven European countries.…”

Section: Literature Reviewmentioning

confidence: 99%

The nexus between tourism, financial development, and economic growth: Evidence from African countries

Ehigiamusoe

2021

African Development Review

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This paper examines the nexus between tourism, financial development and economic growth in 31 African countries using the Dumitrescu–Hurlin Granger non‐causality test that accounts for heterogeneity and cross‐sectional dependence. It also employs the Granger causality test in the frequency domain that distinguishes between temporary and permanent causality for the country‐specific analysis. It shows a cointegration relationship between tourism, financial development and economic growth. It reveals a joint long‐run causality from tourism and financial development to economic growth, and a joint short‐run and long‐run causality from tourism and economic growth to financial development, albeit the joint causality from financial development and economic growth to tourism is tenuous. The individual causality shows a bidirectional causality between tourism and economic growth, between financial development and economic growth, and between tourism and financial development. The country‐specific analysis reveals that tourism is a significant predictor of financial development and economic growth at high frequency rather than at low frequency in most countries. Therefore, African countries should prioritize the policies and programs that can facilitate the development of the tourism and financial sectors in their quest to accelerate economic growth and development.

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“…For almost two decades, tourism researchers are trying to identify and determine the nexus between economic growth and tourism development to provide a better understanding of their relationship (Kožić et al 2020). Traditionally, the tourism sector is considered to have a positive impact on the economy and therefore to be a tool by which economies can stimulate their economic growth (Pérez-Rodríguez et al 2021). Ehigiamusoe (2020) defined the tourism-led growth hypothesis in a way that tourism can facilitate economic growth because it provides income and employment, as well as improves infrastructure and balance of payments.…”

Section: Literature Reviewmentioning

confidence: 99%

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

Mirović¹,

Kalaš²,

Pavlović³

2021

6th International Thematic Monograph: Modern Management Tools and Economy of Tourism Sector in Present Era

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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.

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Testing the validity of the tourism-led growth hypothesis under long-range dependence

Cited by 17 publications

References 64 publications

Does tourism promote economic growth? A fractionally integrated heterogeneous panel data analysis

Does tourism promote economic growth? A fractionally integrated heterogeneous panel data analysis

The nexus between tourism, financial development, and economic growth: Evidence from African countries

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

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