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Tourism and Economic Growth: An Empirical Analysis of Greece

Author

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  • 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
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    References listed on IDEAS

    as
    1. Konstantinos Eleftheriou & Evangelos Sambracos, 2019. "Tourism–growth nexus and spatial spillovers: Evidence from Greece," Tourism Economics, , vol. 25(2), pages 297-302, March.
    2. 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.
    3. 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).
    Full references (including those not matched with items on IDEAS)

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    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

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