The Effect of Tourism on Nigerian Economic Growth

Abstract

This study empirically investigated the effect of tourism on Nigerian economic growth using annual time series data from 1980 to 2016. The study made use of standard neoclassical growth theory while ordinary least square (OLS) and Granger causality test was the estimation techniques used in the study. The result of the OLS revealed that gross capital formation and labour were positively related to gross domestic product while total average on spending, total visit and total earnings were negatively related with gross domestic product in Nigeria. Total visit and total earning were inversely related with gross domestic product, which is again the result expected. Also, the Adjusted R-square showed that about 72.8 % of the total variations in the behaviour of gross domestic product are explained by explanatory variables and the Durbin-Watson statistics of 2.108 implied that there is no autocorrelation or serial correlation in the data for the model. Also, Granger causality result revealed that out of the three tourism variable, causality only run from total earning from tourism to economic growth while causality does not run from both total average spending on tourism centre and total visit to economic growth. The study recommended that the authorities in charge of tourism in Nigeria need to embark on public-private partnership for more investment in tourism and this will go a long way in developing the country's tourist centre and this will make our tourist centre to compete with others outside the country. There should be increase in spending on tourism centre so as to attract more visitor from within and outside the country and this will make the nation to have more revenue. There should be proper monitoring of our tourist centre and proper maintenance of the centre.