Time-varying linkages between tourism receipts and economic growth in a small open economy

Arslantürk, Yalçın; Balcılar, Mehmet; Özdemir, Zeynel Abidin

doi:10.1016/j.econmod.2010.06.003

Cited by 179 publications

(129 citation statements)

References 35 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: 80%

“…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: 82%

“…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: 79%

“…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%

“…Although their findings support the TLEG hypothesis, they show that the tourism-growth link changes over time by becoming either more or less pronounced. Arslanturk et al (2011), using a rolling-window Vector Error Correction Model, show that the impact of tourism receipts on Turkish GDP is negative until 1983 and turns into a positive effect in the post-1983 period. Tang and Tan (2013) also focus on Malaysia, using a recursive Granger-causality test to study the time-varying relationship between international tourist arrivals and industrial production.…”

Section: Introductionmentioning

confidence: 99%

See 4 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: 80%

Section: Spillover Plotssupporting

confidence: 82%

Section: Introductionmentioning

confidence: 79%

Section: Introductionmentioning

confidence: 99%

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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Tourism and economic growth in Asia: A bootstrap multivariate panel Granger causality

2018

Journal of Tourism Research

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This work uses a multivariate panel Granger causality test to examine the causal relationship between real international tourism receipts and economic growth in 11 Asian regions for the period from 1995 to 2015, accounting for both dependency and heterogeneity across regions. The results of this study support evidence for the growth hypothesis in the regions, such as Cambodia, China, and Malaysia. A reverse relationship supports evidence on the conservation hypothesis for the regions, such as Hong Kong, Indonesia, the Philippines, and South Korea. A reciprocal causal relationship was found in Macau and Singapore.

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Is tourism‐led growth hypothesis still valid?

Mitra

2019

Journal of Tourism Research

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The purpose of the study is to re‐examine the direction of the causal relationship between tourism growth and economic progress. Although a vast literature on the topic is available, the results are still mixed and sample dependent. The study re‐examined the causal relationship using as many as 158 countries and classified them into three groups on the basis of the international tourism receipt relative to the gross domestic product (GDP). On methodological front, the study adopted the new panel causality model of Dumitrescu and Hurlin. Before carrying out the causality test, cross‐sectional dependence and homogeneity tests are implemented because the Dumitrescu and Hurlin test can take both cross‐sectional dependence and heterogeneity into account. The interesting outcome of the study is that the bivariate causal relationship has remained consistent across three subsamples when tourism growth is measured in terms of international tourism receipt and related to the GDP.

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Time-varying linkages between tourism receipts and economic growth in a small open economy

Cited by 179 publications

References 35 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?

Tourism and economic growth in Asia: A bootstrap multivariate panel Granger causality

Is tourism‐led growth hypothesis still valid?

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