Tourism and Economic Growth in Latin American Countries: A Panel Data Approach

Abstract

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Is Tourism Development a Sustainable Economic Growth Strategy in the Long Run? Evidence from GCC Countries

“…As Chen and Chiou-Wei [13] state, the causal relationship between tourism and economic growth is not stable, and there might not be a unique relationship type among GCC countries. In this sense, Eugenio-Martin, Morales, and Scarpa [40], Chang, Khamkaev, and McAleer [41], Leitão [26], Tavares and Leitão [27], Chou [37], and Tugcu [39] in their empirical investigation argued that, depending on different dynamics, such as economic and political structures, trade openness, initial tourism conditions, investment rate, sectorial linkages, and historical background of the countries, this relationship may vary. Therefore, different studies could show different results in these countries in the context of tourism-led growth, even for the same sample.…”

“…Eugenio-Martin, Morales and Scarpa [40] investigated the relationship between tourism and economic growth in 21 Latin American countries using GMM dynamic panel data analysis, over the period [1985][1986][1987][1988][1989][1990][1991][1992][1993][1994][1995][1996][1997][1998]. Their results show that tourism has a positive and significant impact on the economic growth of Latin American countries.…”

Tourism: the untapped goldmine in the Gold Coast

“…For example, Eugenio-Martín, Morales, and Scarpa (2004) have shown that tourism expansion is chiefly responsible for the economic growth of 21 Latin American countries. Using the Tourism Satellite Account model, Jovanović and Vukasović (2014) show a direct contribution of tourism consumption to Serbia's GDP.…”

Tourism as a factor of development

“…The contribution of tourism to development is explored by Eugenio-Martin et al [20] where they look at the relationship between tourism and economic growth. Using a panel data approach for Latin American countries for the period 1985-1998, their findings reveal that tourism is appropriate for economic growth of medium and low-income countries and not necessarily a sufficient factor for the developed world.…”