IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxviiy2024i3p82-96.html
   My bibliography  Save this article

Tourism and Economic Growth: An Empirical Analysis of Greece

Author

Listed:
  • Stefanos Samprakos

Abstract

Purpose: The purpose of the study is to examine the impact of tourism on economic growth in Greece. This examination aims to test the validity of the tourism-led growth hypothesis. Design/Methodology/Approach: The study utilizes time series regression analysis. Gross Domestic Product (GDP) is used as the dependent variable, while the real exchange rate (EX), Foreign Direct Investment (FDI), and Tourism Receipts (TR) are used as independent variables. The time series data cover the period from 1995 to 2018 for Greece. Findings: The findings indicate a positive relationship between tourism and economic growth. Specifically, a 1% increase in the real exchange rate corresponds to a 0.78% rise in GDP. Regarding FDI, a 1% increase leads to a 0.003% decrease in GDP. Concerning Tourism Receipts, a 1% increase leads to a 0.036% increase in GDP. These results confirm that tourism significantly contributes to Greece's economic growth, thereby validating the tourism-led growth hypothesis. Practical Implications: The study suggests that policymakers should emphasize policies that encourage investment in the tourism sector, as this would benefit Greece's economic growth. Originality/Value: The study contributes to existing literature by examining the impact of tourism on economic growth specifically for Greece during the period from 1995 to 2018. It provides insights that can guide policymakers in supporting the tourism sector as a driver of economic growth.

Suggested Citation

  • Stefanos Samprakos, 2024. "Tourism and Economic Growth: An Empirical Analysis of Greece," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 82-96.
    • Handle: RePEc:ers:journl:v:xxvii:y:2024:i:3:p:82-96
    as

    Download full text from publisher

    File URL: https://ersj.eu/journal/3424/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dogan, Ergun & Zhang, Xibin, 2023. "A nonparametric panel data model for examining the contribution of tourism to economic growth," Economic Modelling, Elsevier, vol. 128(C).
    2. Konstantinos Eleftheriou & Evangelos Sambracos, 2019. "Tourism–growth nexus and spatial spillovers: Evidence from Greece," Tourism Economics, , vol. 25(2), pages 297-302, March.
    3. Schubert, Stefan Franz & Brida, Juan Gabriel & Risso, Wiston Adrián, 2011. "The impacts of international tourism demand on economic growth of small economies dependent on tourism," Tourism Management, Elsevier, vol. 32(2), pages 377-385.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Armindo Frias & João Cabral & à lvaro Costa, 2015. "Logistic optimization in tourism networks," ERSA conference papers ersa15p1451, European Regional Science Association.
    2. Constantin ANGHELACHE & Madalina-Gabriela ANGHEL & Florin Paul Costel LILEA & Doina BUREA & Doina AVRAM, 2017. "European Union Strategy For Industry, Trade And Services Development," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(8), pages 145-158, August.
    3. Setareh Shirkhani & Sami Fethi & Andrew Adewale Alola, 2021. "Tourism-Related Loans as a Driver of a Small Island Economy: A Case of Northern Cyprus," Sustainability, MDPI, vol. 13(17), pages 1-17, August.
    4. Juan Gabriel Brida & Silvia London & Mara Rojas, 2013. "A Dynamic Model of Tourism and Economic Growth: the Role of Physical and Human Capital," Economics Bulletin, AccessEcon, vol. 33(2), pages 1361-1373.
    5. Ronald Kumar, 2014. "Exploring the role of technology, tourism and financial development: an empirical study of Vietnam," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(5), pages 2881-2898, September.
    6. Uktam Umurzakov & Shakhnoza Tosheva & Raufhon Salahodjaev, 2023. "Tourism and Sustainable Economic Development: Evidence from Belt and Road Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 503-516, March.
    7. José F. Perles & Martín Sevilla & Ana B. Ramón-Rodríguez & María Jesús Such & Patricia Aranda, 2024. "Carry-over effects of tourism on traditional activities," Tourism Economics, , vol. 30(5), pages 1237-1256, August.
    8. Wei-Bin Zhang, 2017. "Spatial Agglomeration And Economic Development With The Inclusion Of Interregional Tourism," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 62(213), pages 93-128, April - J.
    9. Brida, Juan Gabriel & London, Silvia & Rojas, Mara, 2012. "El turismo como motor de crecimiento económico: impacto de las preferencias intertemporales de los agentes [The tourism as economic growth engine: the impact of the agents time preferences]," MPRA Paper 36607, University Library of Munich, Germany.
    10. Francis Baidoo & Lei Pan & Vera Ogeh Lassey Fiador & Elikplimi Komla Agbloyor, 2024. "Importing to feed international tourists: Growth implications for islands across the globe," Tourism Economics, , vol. 30(7), pages 1651-1679, November.
    11. Nnamdi Chinwendu Nwaeze & Kingsley Ikechukwu Okere & Izuchukwu Ogbodo & Obumneke Bob Muoneke & Ifeoma Nwakaego Sandra Ngini & Samuel Uchezuike Ani, 2023. "Dynamic linkages between tourism, economic growth, trade, energy demand and carbon emission: evidence from EU," Future Business Journal, Springer, vol. 9(1), pages 1-12, December.
    12. Raffaello Bronzini & Emanuele Ciani & Francesco Montaruli, 2022. "Tourism and local growth in Italy," Regional Studies, Taylor & Francis Journals, vol. 56(1), pages 140-154, January.
    13. Carolyn Chisadza & Matthew Clance & Rangan Gupta & Peter Wanke, 2022. "Uncertainty and tourism in Africa," Tourism Economics, , vol. 28(4), pages 964-978, June.
    14. Korinth Bartosz, 2023. "From resilience to collapse: a cross-country study of tourist spending in Europe during the COVID-19 pandemic," Environmental & Socio-economic Studies, Sciendo, vol. 11(3), pages 54-64, September.
    15. Abdul Rehman & Hengyun Ma & Muhammad Irfan & Munir Ahmad & Ousmane Traore, 2020. "Investigating the Influence of International Tourism in Pakistan and Its Linkage to Economic Growth: Evidence From ARDL Approach," SAGE Open, , vol. 10(2), pages 21582440209, June.
    16. Yang, Eunjung & Kim, Jinwon & Pennington-Gray, Lori & Ash, Kevin, 2021. "Does tourism matter in measuring community resilience?," Annals of Tourism Research, Elsevier, vol. 89(C).
    17. Nasir Muhammad Ali & Wu Junjie & Guerrero José Calderón, 2015. "Economic Growth, Exchange Rate and Constrained Competiveness of the Tourism Sector in Andalucía," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 48(1), pages 84-100, December.
    18. Yuichi Furukawa & Kenji Kondoh & Shigemi Yabuuchi, 2019. "Tourism, Capital and Labor Inflows and Regional Development," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 25(2), pages 221-233, May.
    19. Ioannis Kostakis, 2020. "Is Tourism a Key Factor for Economic Growth? Fresh Evidence from South Europe Using Panel Cointegration and PVAR Analyses," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 6(2), pages 123-138, December.
    20. Juan M. Hernández & Carmelo J. León, 2013. "Welfare and Environmental Degradation in a Tourism-Based Economy," Tourism Economics, , vol. 19(1), pages 5-35, February.

    More about this item

    Keywords

    Tourism-led; growth hypothesis; tourism economics; time series regression; economic growth; Greek tourism.;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development
    • Z38 - Other Special Topics - - Tourism Economics - - - Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxvii:y:2024:i:3:p:82-96. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.