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On the Relationship between Tourist Flows and Household Expenditure in Barbados: A Dynamic OLS Approach

Author

Listed:
  • Mahalia Jackman

    (Central Bank of Barbados)

  • Troy Lorde

    (University of the West Indies)

Abstract

Keynesians propose that increases in tourist arrivals are associated with an expansion in private spending through the multiplier effect. To test this hypothesis, this study augments a simple consumption function with tourist arrivals and employs the dynamic OLS method to compute the short and long run relationships of the variables. Results suggest that while tourist arrivals have a positive correlation with household expenditure in the short run, it does not Granger cause household expenditure consumption.

Suggested Citation

  • Mahalia Jackman & Troy Lorde, 2010. "On the Relationship between Tourist Flows and Household Expenditure in Barbados: A Dynamic OLS Approach," Economics Bulletin, AccessEcon, vol. 30(1), pages 472-481.
    • Handle: RePEc:ebl:ecbull:eb-09-00486
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    References listed on IDEAS

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    Cited by:

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    3. Adedoyin, Festus Fatai & Bekun, Festus Victor & Driha, Oana M. & Balsalobre-Lorente, Daniel, 2020. "The effects of air transportation, energy, ICT and FDI on economic growth in the industry 4.0 era: Evidence from the United States," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    4. Sarantis Lolos & Panagiotis Palaios & Evangelia Papapetrou, 2023. "Tourism-led growth asymmetries in Greece: evidence from quantile regression analysis," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 22(1), pages 125-148, January.
    5. Osinubi, Tolulope Temilola & Osinubi , Olufemi Bankole, 2020. "Inclusive Growth in Tourism-led Growth Hypothesis: Evidence from Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 8(2), July.
    6. Oluwatosin Adeniyi & Terver T Kumeka & Samuel Orekoya & Wasiu Adekunle, 2023. "Impact of tourism development on inclusive growth: A panel vector autoregression analysis for African economies," Tourism Economics, , vol. 29(3), pages 612-642, May.

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    More about this item

    Keywords

    Tourism; Consumption; Barbados; Dynamic OLS;
    All these keywords.

    JEL classification:

    • L8 - Industrial Organization - - Industry Studies: Services
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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