The Validity of Tourism-led Growth Hypothesis for The Top Ten Tourism Revenue Generating Countries

Authors : Emrah SOFUOĞLU

Pages : 95-108

Doi:10.30519/ahtr.855879

View : 12 | Download : 15

Publication Date : 2022-03-01

Article Type : Research Paper

Abstract :This study aims to test the validity of the tourism-led growth hypothesis. For this purpose, ten countries with the highest tourism income insert ignore into journalissuearticles values(USA, China, Australia, France, Italy, England, Spain, Germany, Japan, Thailand); are included in the analysis covering the period 1995-2018. Pedroni cointegration, panel Dynamic Ordinary Least Square insert ignore into journalissuearticles values(DOLS); and panel Fully Modified Ordinary Least Square insert ignore into journalissuearticles values(FMOLS); methods are utilized by using economic growth, tourism revenues and exchange rate series. According to panel DOLS and panel FMOLS test results, tourism revenues and exchange rate have a positive effect on economic growth. Furthermore, Granger causality analysis findings indicate a uni-directional causal relation from tourism revenues to economic growth and from exchange rate to tourism. The overall results of the empirical analysis verify the tourism-led growth hypothesis for the ten countries with the highest tourism income.
Keywords : Tourism led Growth Hypothesis, Economic Growth, Panel Data Analysis