RELATIONSHIP BETWEEN TOURISM AND ECONOMIC GROWTH: A PANEL GRANGER CAUSALITY APPROACH

Journal Title: Asian Economic and Financial Review - Year 2012, Vol 2, Issue 5

Abstract

This paper investigated the causal relationship between tourism revenue and gross domestic product (GDP) using the panel data of 135 countries for the period 1995–2008. For this purpose, Panel Granger causality analysis was applied to 11 groups of countries. This classification was created as America (30 countries), Asia (34 countries), Europe (37 countries), East Asia (13 countries), South Asia (6 countries), Central Asia (5 countries), Latin America & Caribbean (28 countries), Oceania (7 countries), Middle East & North Africa (11 countries), Sub Saharan Africa (24 countries) and the world (135 countries). Results indicated bidirectional causality in Europe between tourism revenue (TR) and gross domestic product (GDP). Findings showed that there is a unidirectional causality in America, Latin America & Caribbean and World from GDP to tourism revenue. While in case of East Asia, South Asia and Oceania the reverse direction of causality was found from tourism revenue to GDP. No causal relationship was found in Asia, Middle East and North Africa, Central Asia and Sub Saharan Africa.

Authors and Affiliations

E. Çağlayan| Department of Econometrics, Faculty of Economics, Marmara University, Goztepe-Kadikoy, Istanbul (Turkey), N. Şak| Department of Econometrics, Faculty of Economics, Marmara University, Goztepe-Kadikoy, Istanbul (Turkey), K. Karymshakov| Department of Public Finance, Kyrgyzstan-Turkey Manas University, ChyngyzAytmatov Campus, Djal, Bishkek (Kyrgyzstan)

Keywords

Related Articles

IMPACT OF FINANCIAL LIBERALIZATION ON ECONOMIC GROWTH: A CASE STUDY OF PAKISTAN

We have tried to explore the link between financial liberalization index (FLI) and economic growth in Pakistan by using annual data for 1971- 2007. The Phillips Perron unit root test is utilized to verify the level of i...

MONETARY POLICY SHOCKS AND EXCHANGE RATE VOLATILITY IN NIGERIA

This paper analysed the effects of monetary policy shocks using changes in various monetary policy instruments on exchange rate volatility in Nigeria. This paper investigates the relationship between exchange rate volati...

DESIGN OF A CGE MODEL TO EVALUATE INVESTMENT IN TRANSPORT INFRASTRUCTURES: AN APPLICATION FOR IRAN

The present paper attempts to design a country scale Computational General Equilibrium (CGE) model to assessment the effects of investment in transport infrastructure. Unlike the previous studies, our model covers impact...

EMPIRICAL TESTING OF EXCHANGE RATE AND INTEREST RATE TRANSMISSION CHANNELS IN CHINA

This paper examines the exchange rate and interest rate volatility transmission channels in China by applying Granger causality, Johansen cointegration, and the VAR model. Empirical results taken from the exchange rate c...

CLOSED FORM SOLUTION FOR HESTON PDE BY GEOMETRICAL TRANSFORMATIONS

One presents and discusses an alternative solution writeable in closed form of the Heston’s PDE, for which the solution is known in literature, up to an inverse Fourier transform. Since the algorithm to compute the inver...

Download PDF file
  • EP ID EP1809
  • DOI -
  • Views 522
  • Downloads 46

How To Cite

E. Çağlayan, N. Şak, K. Karymshakov (2012). RELATIONSHIP BETWEEN TOURISM AND ECONOMIC GROWTH: A PANEL GRANGER CAUSALITY APPROACH. Asian Economic and Financial Review, 2(5), 591-602. https://europub.co.uk/articles/-A-1809