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Research Note: A Causality Analysis of Tourism as a Long-Run Economic Growth Factor in Jamaica

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  • Lloyd Ahamefule Amaghionyeodiwe

    (Department of Economics and Development Studies, Covenant University, Ota, Ogun State, Nigeria)

Abstract

This study uses multivariate cointegration, error-correction modelling and variance decomposition to analyse the causal relationship between tourism and economic growth in Jamaica. The study finds, among other things, that there is a long-run positive relationship between economic growth and tourism. An increase in tourism receipts tends to have a positive impact on GDP. Current GDP is influenced by past values of GDP and those of tourism receipts, whereas tourism receipts are influenced only by their past values. Thus, policies that are geared towards attracting more tourists should be promoted, as this will lead not only to an increase in tourism receipts but also to an increase in the overall economic growth of Jamaica.

Suggested Citation

  • Lloyd Ahamefule Amaghionyeodiwe, 2012. "Research Note: A Causality Analysis of Tourism as a Long-Run Economic Growth Factor in Jamaica," Tourism Economics, , vol. 18(5), pages 1125-1133, October.
    • Handle: RePEc:sae:toueco:v:18:y:2012:i:5:p:1125-1133
    DOI: 10.5367/te.2012.0155
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    References listed on IDEAS

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    1. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-1580, November.
    2. MacKinnon, James G & Haug, Alfred A & Michelis, Leo, 1999. "Numerical Distribution Functions of Likelihood Ratio Tests for Cointegration," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(5), pages 563-577, Sept.-Oct.
    3. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    4. Johansen, Soren, 1995. "Likelihood-Based Inference in Cointegrated Vector Autoregressive Models," OUP Catalogue, Oxford University Press, number 9780198774501.
    5. Nikolaos Dritsakis, 2004. "Tourism as a Long-Run Economic Growth Factor: An Empirical Investigation for Greece Using Causality Analysis," Tourism Economics, , vol. 10(3), pages 305-316, September.
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    Cited by:

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    2. Shengrui Zhang & Lei Chi & Tongyan Zhang & Yingjie Wang, 2023. "Optimization of Tourism Management Based on Regional Tourism Competitiveness Evaluation: Evidence from Ningxia Hui Autonomous Region, China," Sustainability, MDPI, vol. 15(12), pages 1-22, June.
    3. José Alberto Fuinhas & Matheus Belucio & Daniela Castilho & Joana Mateus & Rafaela Caetano, 2020. "Tourism and Economic Growth Nexus in Latin America and Caribbean Countries: Evidence from an Autoregressive Distributed Lag Panel," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 13(1), pages 21-34.
    4. José Alberto Fuinhas & Matheus Belucio & Daniela Castilho & Joana Mateus & Rafaela Caetano, 2020. "Tourism and Economic Growth Nexus in Latin America and Caribbean Countries: Evidence from an Autoregressive Distributed Lag Panel," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 13(1), pages 21-34.
    5. Shengrui Zhang & Lei Chi & Tongyan Zhang & Yingjie Wang, 2022. "Spatial Pattern and Influencing Factors of Tourism Resources in Northwestern Ethnic Areas in China—A Case Study of Longde County," IJERPH, MDPI, vol. 19(24), pages 1-20, December.

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