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The relationship between tourism and economic growth among BRICS countries: a panel cointegration analysis

Author

Listed:
  • Haroon Rasool

    (Aligarh Muslim University)

  • Shafat Maqbool

    (Aligarh Muslim University)

  • Md. Tarique

    (Aligarh Muslim University)

Abstract

Tourism has become the world’s third-largest export industry after fuels and chemicals, and ahead of food and automotive products. From last few years, there has been a great surge in international tourism, culminates to 7% share of World’s total exports in 2016. To this end, the study attempts to examine the relationship between inbound tourism, financial development and economic growth by using the panel data over the period 1995–2015 for five BRICS (Brazil, Russia, India, China and South Africa) countries. The results of panel ARDL cointegration test indicate that tourism, financial development and economic growth are cointegrated in the long run. Further, the Granger causality analysis demonstrates that the causality between inbound tourism and economic growth is bi-directional, thus validates the ‘feedback-hypothesis’ in BRICS countries. The study suggests that BRICS countries should promote favorable tourism policies to push up the economic growth and in turn economic growth will positively contribute to international tourism.

Suggested Citation

  • Haroon Rasool & Shafat Maqbool & Md. Tarique, 2021. "The relationship between tourism and economic growth among BRICS countries: a panel cointegration analysis," Future Business Journal, Springer, vol. 7(1), pages 1-11, December.
    • Handle: RePEc:spr:futbus:v:7:y:2021:i:1:d:10.1186_s43093-020-00048-3
    DOI: 10.1186/s43093-020-00048-3
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    2. Rodousakis, Nikolaos & Soklis, George, 2024. "An “Extended method” for measuring intersectoral linkages: The case of the Greek tourism sector," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 594-606.
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    15. Victor Anderson Hodibert & Adriana Narkwa Anderson (PhD) & Kate Neequaye, 2024. "AI/Robotics in the Tourism and Hospitality Sector: Technological Realities and Imaginaries in the Ghanaian Context," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(1), pages 2471-2480, January.
    16. Md. Hasanur Rahman & Liton Chandra Voumik & Md. Jamsedul Islam & Md. Abdul Halim & Miguel Angel Esquivias, 2022. "Economic Growth, Energy Mix, and Tourism-Induced EKC Hypothesis: Evidence from Top Ten Tourist Destinations," Sustainability, MDPI, vol. 14(24), pages 1-16, December.
    17. Fernando Sánchez López, 2022. "Measuring the Effect of the Misery Index on International Tourist Departures: Empirical Evidence from Mexico," Economies, MDPI, vol. 10(4), pages 1-16, April.
    18. Driss El Kadiri Boutchich, 2024. "Tourism performance evaluation and analysis from composite index and slack based method," OPSEARCH, Springer;Operational Research Society of India, vol. 61(2), pages 501-523, June.
    19. Mohd Azhar & Ruksar Ali & Sheeba Hamid & Mohd Junaid Akhtar & Mohd Nayyer Rahman, 2022. "Demystifying the effect of social media eWOM on revisit intention post-COVID-19: an extension of theory of planned behavior," Future Business Journal, Springer, vol. 8(1), pages 1-16, December.
    20. Destek, Mehmet Akif & Aydın, Sercan, 2021. "An Empirical Note on Tourism and Sustainable Development Nexus," MPRA Paper 114219, University Library of Munich, Germany.
    21. Zhao Shizhao & Ma Mingying, 2024. "Study on Economic Impact of Guizhou Tourism Business Environment Based on CGE Model," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 7099-7126, June.
    22. Archana Yadav & Biswajit Patra & Tanmay Basu, 2024. "Modeling International Tourist Arrivals: An NLP Perspective," SN Operations Research Forum, Springer, vol. 5(4), pages 1-19, December.
    23. Yingying Hu, 2022. "Where Have Carbon Emissions Gone? Evidence of Inbound Tourism in China," Sustainability, MDPI, vol. 14(18), pages 1-20, September.

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    More about this item

    Keywords

    Economic growth; Inbound tourism; Financial development; Cointegration; Panel granger causality; BRICS;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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