Tourism and Economic Growth in Malaysia: Evidence from Tourist Arrivals from Asean-S Countries

Testing tourism-led economic growth and economic-driven tourism growth hypotheses

“…Jin (2011) examined dynamic eff ects of tourism on economic growth in Hong Kong through unrestricted vector autoregressive (VAR) model and could not confi rm long-term eff ect of tourism on economic growth, supporting neutrality theory. Lean and Tang (2010) supported TLGH in Malaysia, similar to the study of Kadir and Karim (2012) and proposed that the relationship is stable over time by incorporating the rolling subsample procedures into the Granger causality test. Trang et al (2014) investigated the same hypothesis in Vietnam during the period 1992-2011 using twostep procedures, Granger causality test and growth decomposition method and claimed support for TLGH hypothesis in Vietnam.…”

“…However, the question of whether tourism indeed causes economic growth or economic growth actually contributes to international tourism has been inconclusive. Gunduz and Hatemi-J (2005), Proença and Soukiazis (2008), Cortés-Jimenez and Pulina (2010), Tang and Abosedra (2016), Belloumi (2010), Kreishan (2015), Hatemi-J (2015), Zhang and Gao (2016), Lean and Tang (2009), Kadir and Karim (2012), Trang, Duc, and Dung (2014), Fayissa, Nsiah, andTadesse (2011), Brida, Lanzilotta, Lionetti, andRisso (2010), and Brida, Pereyra, and Risso (2008) confi rm validity of tourism-led growth hypothesis (TLGH), while Payne and Mervar (2010), Bouzahzah and El Menyari (2013), Oh (2005), Kyophilavong, Gallup, Charoenrat, and Nozaki (2018) and Suresh and Senthilnathan (2014) reveal evidence of economic-driven tourism hypothesis (EDTH). On the other hand, Demiroz and Ongan (2005), Bilen, Yilanci, and Eryüzlü (2017), Tang and Ozturk (2017), Gautam (2011) and Khalil, Kakar, and Waliullah (2007) present validity of both hypotheses, more precisely, reciprocal relationship.…”

“…,Jin (2011),Lean and Tang (2010),Kadir and Karim (2012),Trang et al (2014), Chen and Chiou-Wei (2009),Oh (2005) andKyophilavong et al (2018) have studied the relationship in selected East Asian countries. Of all the studies, all of them supported TLHG in respective countries, except the study of Jin…”

The Relation between International Tourism and Economic Growth

“…There are many attempts to investigate the relationship between tourism revenue and economic growth. Kadir and Karim [12], Othman, Salleh, and Sarmidi [13], Tang and Tan [14] found that tourism expansion could play an important role in stimulating economic growth in Malaysia.Obadiah et al [15] examined the relationship between tourism development and economic growth for Kenya using the ARDL estimation approach. Their results showed a unidirectional Causality from tourism development to economic growth.…”

Determinant of gross regional domestic product (GRDP) in Yogyakarta special province

“…Research conducted in Malaysia by Kadir & Karim (2012) concluded the existence of causalities relationship between the country's income from the foreign visitors with the real economic growth. The result of the research used the reggression analysis of data panel has also proved that the visit of tourists had a positive influence and was significant to the real economic growth of the country.…”