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An Investigation of Tourism, Economic Growth, CO 2 Emissions, Trade Openness and Energy Intensity Index Nexus: Evidence for the European Union

Author

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  • Ioana Meșter

    (Department of Economics and Business, Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania)

  • Ramona Simuț

    (Department of Economics and Business, Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania)

  • Liana Meșter

    (Department of International Business, Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania)

  • Dorin Bâc

    (Department of Economics and Business, Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania)

Abstract

Tourism has become one of the most important sectors in many countries, significantly contributing to their economic growth and development. However, the expansion of tourism has also brought about various environmental and social challenges. The relationship between tourism, economic growth, trade openness, and the environment is diverse and complex. The objective of this paper is to investigate the relationship between the international tourism development index, GDP per capita, CO 2 emissions, trade openness index as well as the energy intensity index in EU 27, over the 1995–2019 period. A composite index for international tourism was developed using the Principal Component Analysis (PCA). Panel Autoregressive distributed lag (ARDL) approach is used to reveal the long- and short-run impact of GDP per capita, CO 2 emissions, trade openness index as well as the energy intensity index on the tourism development index. Panel ARDL estimates confirm some of our research hypotheses: at the level of EU countries, there is a short-run relationship between tourism and GDP per capita, but only in a few EU countries, trade openness influences tourism development index. Dumitrescu-Hurlin causality test confirms long-run feedback relationship between tourism development index and trade openness, between tourism development index and CO 2 emissions, and between tourism development index and GDP and unilateral causality running from tourism development index towards energy efficiency.

Suggested Citation

  • Ioana Meșter & Ramona Simuț & Liana Meșter & Dorin Bâc, 2023. "An Investigation of Tourism, Economic Growth, CO 2 Emissions, Trade Openness and Energy Intensity Index Nexus: Evidence for the European Union," Energies, MDPI, vol. 16(11), pages 1-26, May.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:11:p:4308-:d:1155080
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