Is tourism‐led growth hypothesis still valid?

Abstract

The purpose of the study is to re‐examine the direction of the causal relationship between tourism growth and economic progress. Although a vast literature on the topic is available, the results are still mixed and sample dependent. The study re‐examined the causal relationship using as many as 158 countries and classified them into three groups on the basis of the international tourism receipt relative to the gross domestic product (GDP). On methodological front, the study adopted the new panel causality model of Dumitrescu and Hurlin. Before carrying out the causality test, cross‐sectional dependence and homogeneity tests are implemented because the Dumitrescu and Hurlin test can take both cross‐sectional dependence and heterogeneity into account. The interesting outcome of the study is that the bivariate causal relationship has remained consistent across three subsamples when tourism growth is measured in terms of international tourism receipt and related to the GDP.

Tourism-led economic growth in Montenegro and Slovenia

“…Montenegro has been widely excluded from empirical researches (Crnogorac & Lago-Peñas, 2019;Tashevska et al, 2020). For example, Mitra (2019) analysed tourism for former Yugoslav republics (Slovenia, Croatia, Bosnia and Herzegovina, Serbia and North Macedonia), but excluded Montenegro. Therefore, the prominent style of the article is to introduce time series data in tourism research, particularly for Montenegro.…”

“…Tourism industries are an important source of income for many developed and developing countries. Thus, most governments actively support the tourism industry (Chi, 2020;Khoshnevis Yazdi, 2019;Mitra, 2019). In 2010, international tourism receipts in Figure 1.…”

Testing tourism-led economic growth and economic-driven tourism growth hypotheses

“…To assess the association between tourism development and economic growth, trivariate system methodology of Katircioglu (2009b) & Ozturk, 2017), international tourism receipts (Muhtaseb & Daoud, 2017;Sokhanvar, Çiftçioğlu, & Javid, 2018;Dogru & Bulut, 2018;Mitra, 2019) as well as per capita real tourism receipts (Tang & Tan, 2018). Here, we use number of international tourism arrivals on which information is more accurate and easily achievable.…”

The Nexus Between Tourism, Environmental Degradation and Economic Growth

“…Such bidirectional causal relationship confirmed in many countries. For instance, Demiroz and Ongan (2005) and Balli et al (2019) for Turkey; Cortes-Jimenez and Pulina (2010) and Perles-Ribes et al (2017) for Spain; Lean and Tang (2010) for Malaysia; Isik et al (2018) for Germany; Ben Jebli Hadhri (2018) for a sample of top ten tourism countries; Aslan (2014) for Portugal; Dogru and Bulut (2018) for seven Mediterranean countries; Mitra (2019) for 158 countries, dividing into three sub-groups according to the ratio of international tourism receipts to GDP. Akadiri and Akadiri (2019) for 16 selected tourism island countries, Akadiri et al (2020a) for Germany.…”