International Tourism and Economic Growth in Zimbabwe: An ARDL - Bounds Testing Approach

Nyoni, Thabani; Mose, Naftaly; Thomi, John

doi:10.9734/ajeba/2021/v21i630392

Cited by 7 publications

(6 citation statements)

References 35 publications

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“…For example, the total annual compensation and recurrent costs associated with livestock predation and crop damage were estimated at U$D 6.8 million in 2009 (The World Bank, 2009). In Zimbabwe's case, as indicated by Nyoni et al's (2021) findings, international tourism can negatively affect economic growth. As expected, the real effective exchange rate elasticity coefficient shows a negative relationship with economic growth, but the coefficient was insignificant.…”

Section: Resultsmentioning

confidence: 94%

“…They postulate that policies designed to expand tourism also lead to economic growth, and economic expansion tends to promote tourism development (Odhiambo, 2011;Sokhanvar et al, 2018). Others have shown that there is a unidirectional causality running from inbound tourism to economic growth, attesting to the TLGH (Nyoni et al, 2021). This implies that tourism expansion-focused government policies subsequently lead to economic growth.…”

Section: Research Hypothesismentioning

confidence: 99%

“…In the SADC (Southern African Development Community) region, a study by Akinboade and Braimoh (2010) utilizing VECM (Johansen)‐Granger causality suggested a TLGH in South Africa, both in the short‐run and long‐run. Nyoni et al (2021) employed an ARDL‐bound approach, using annual data from 1980 to 2017, and validated TLGH both in the short run and long‐run for Zimbabwe's economy as well.…”

Section: Literature Reviewmentioning

confidence: 99%

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The relationship between inbound tourism and economic growth: Case of Botswana

Badimo,

Yuhuan

2023

Natural Resources Forum

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This study investigates the relationship between inbound tourism expansion and economic growth in Botswana, employing time series data from 1988 to 2019. An autoregressive distributed lag (ARDL) bounds tests and Toda and Yamamoto causality test were utilized for cointegration and direction of causality analyses, respectively. The study findings suggest and validate a tourism‐led growth hypothesis (TLGH) both in the long and short run. However, inbound tourism expansion has a modest impact on the country's economic growth, which causes concern and need for improvement. Therefore, the study suggests that there should be strengthening and expediting of tourism product diversification for enhanced tourism experiences and tourist spending. The tourism sector should be restructured to curb high economic and financial leakages, create strong linkages with other sectors, and adopt a mixed‐price model to promote domestic tourism and local beneficiation.

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Section: Resultsmentioning

confidence: 94%

Section: Research Hypothesismentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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The relationship between inbound tourism and economic growth: Case of Botswana

Badimo,

Yuhuan

2023

Natural Resources Forum

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“…The unit root test was employed to eliminate any possibility of spurious regressions and erroneous conclusions (Nyoni, 2021). Phillips-Peron unit root test was conducted to find out whether the variables were stationary at the level or whether they were non-stationary at the level and the result is reported in Table 4.…”

Section: Econometric Resultsmentioning

confidence: 99%

Inflation and Saving: A puzzle

2022

DCS

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In the wake of the steep fall in the national savings due to economic shocks, among them the COVID-19 pandemic macroeconomic consequences, this study examines to what extent inflation explains the variation in the saving behavior in developing countries. Most past empirical studies investigated the role of inflation on savings only in advanced nations. The current study will investigate the effect of inflation on savings culture in Kenya. To determine how inflation explains saving, the study uses the ordinary least squares(OLS) estimation technique. From regression analysis findings, savings are positively related to inflation, economic growth, and interest rate. In contrast, consumption expenditure is negatively related to national savings. From estimation results, in Kenya, high inflation will stimulate further growth in the national savings. This finding is puzzling as it contradicts the implications of most monetary general equilibrium models. Expansionary inflation result implies that the central bank should vitalize inflation, to promote a higher saving culture in Kenya.

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“…International tourism is steadily growing as a strong pillar of sustainable economic growth and development in the developing countries (Jenkins, 2020) and apparently offers the potential for growth rates far in excess of what can be achieved by domestic tourism and obviously deserves priority attention (English and Ahebwa, 2018). Zimbabwe is, in fact, banking on tourism sector growth (Zhou et al, 2014;Thomi et al, 2021), specifically, international tourism (Chitiyo et al, 2019) to resuscitate the economy. The country is not yet ready to rely on domestic tourism because most of its citizens are low-income earners that cannot economically support tourism in Zimbabwe (Mutana and Zinyemba, 2013;Chitiyo et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Tourism Led Growth: Evidence from Time-Series Data

Nyoni¹,

Mose²

2023

IJTH

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The empirical debate on the role of international tourism on local economic growth is inconclusive and is characterized by two main opposing views: the Tourism-led economic growth hypothesis and the Economy-driven tourism growth hypothesis. The objective of the study was to establish the role of tourism development on economic growth using time series secondary data from Zimbabwe. Empirically, the study develops a tourism-growth model that is an extension of Solow ( 1956) neoclassical growth function and attempts to determine whether there is the long-run and short-run relationship via Autoregressive Distributed Lag (ARDL) model and Granger technique. The main finding of this study is the Tourism-led economic growth hypothesis can be accepted in Zimbabwe both in shortrun and long-run periods. The study findings have empirically verified the presence of the Tourism-led economic growth hypothesis in Zimbabwe. Tourism could be an effective substance for the sustainable growth of the country's economy and a strategy to help Zimbabwe recover from Covid-19 economic effect. They showed that tourism is in part an endogenous growth process, requiring a systematic allocation of resources by government to sustain its effect on local economies. Further, the country can ease visa and border crossing processes as well as eradicate insecurity for sustainable tourism and economic development.

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International Tourism and Economic Growth in Zimbabwe: An ARDL - Bounds Testing Approach

Cited by 7 publications

References 35 publications

The relationship between inbound tourism and economic growth: Case of Botswana

The relationship between inbound tourism and economic growth: Case of Botswana

Inflation and Saving: A puzzle

Tourism Led Growth: Evidence from Time-Series Data

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