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Tourism Led Growth: Evidence from Panel Cointegration Tests

Author

Listed:
  • Theodore Panagiotidis

    (Department of Economics, University of Macedonia, Greece; The Rimini Centre for Economic Analysis, Italy)

  • Thomas Panagiotou

    (European University Institute, Italy)

  • Maurizio Mussoni

    (Department of Economics, University of Bologna, Italy; The Rimini Centre for Economic Analysis, Italy)

Abstract

The Tourism-Led-Growth hypothesis is investigated in this study. We employ a panel of 187 countries for a period that spans from 1995 to 2009. Panel unit root tests confirm that both GDP and tourism receipts are non-stationary. Alternative panel cointegration tests are employed and the results suggest that there is a long-run relationship between tourism receipts and GDP. Different specifications that take into account the accounting effect, confirm the latter. Finally, the long-run elasticities of tourism receipts on GDP are found to take values close to 0.2.

Suggested Citation

  • Theodore Panagiotidis & Thomas Panagiotou & Maurizio Mussoni, 2012. "Tourism Led Growth: Evidence from Panel Cointegration Tests," Working Paper series 74_12, Rimini Centre for Economic Analysis.
    • Handle: RePEc:rim:rimwps:74_12
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    References listed on IDEAS

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    More about this item

    Keywords

    panel unit roots; panel cointegration; tourism-led-growth;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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