Tourism and growth in Lebanon: new evidence from bootstrap simulation and rolling causality approaches

Tang, Chor Foon; Abosedra, Salah

doi:10.1007/s00181-015-0944-9

Cited by 63 publications

(55 citation statements)

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“…Specifically, Ghali (1976) was the first to investigate the nexus between tourism and economic growth from an empirical perspective using the ordinary least square method, and Balaguer and Cantavella-Jordá (2002) were pioneers in examiningthe validity of the TLG hypothesis. The results of this line of research are sensitive to the sample period, model specification, variablesselected,frequency of observations, methodological approachapplied and country/countries involved, althoughthe majority of studies support the TLG hypothesis (e.g., Brida et al, 2008;Gunduz and Hatemi-J, 2005;Nowak and Sahli, 2007;Tang and Abosedra, 2016;Tang and Tan, 2015).However, a number ofstudies (Lee, 2012;Oh, 2005;Payne and Mervar, 2010;Tang and Jang, 2009)have identified the reverse effect, that economic development boosts tourism expansion. This hypothesis, called the growth-led tourism hypothesis, postulates that the sustained economic growth of a country facilitates the development of the tourism sector in that country.As resources become available for tourism infrastructure, the positive economic climate encourages the proliferation of tourism activities, and international tourists are also attracted by the country's economic vitality.…”

Section: Literature Reviewmentioning

confidence: 95%

“…The sample period spans from 1990Q1 to 2015Q4, with a total of 104 quarterly observations. Three key variables havetraditionally been employed in the tourism economics literature to measure the volume of tourism flows: the total number of international tourist arrivals (Gunduz and Hatemi-J, 2005;Katircioglu, 2009;Kim et al, 2006;Tang and Abosedra, 2016), international tourism receipts (Arslanturk et al, 2011;Balaguer and Cantavella-Jordá, 2002;Chen and Chiou-Wei, 2009;Ridderstaat et al, 2014), and international tourism expenditures (Aslan, 2016;Cárdenas-García et al, 2015;Song et al, 2010;Tugcu, 2014). However, a major drawback of these common tourismactivity indicators is that such indicators only show a partial connection to economic growth.…”

Section: Data Descriptionmentioning

confidence: 99%

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Tourism-led growth hypothesis in the top ten tourist destinations: New evidence using the quantile-on-quantile approach

et al. 2017

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This paper examines the empirical validity of the tourism-led growth hypothesis in the toptentourist destinations in the world(China, France, Germany, Italy, Mexico, Russia, Spain, Turkey, the United Kingdom, and the United States)using the quantile-on-quantile (QQ) approach and a new index of tourism activity that combines the most commonly used tourism indicators. This methodology, recently introduced by Sim and Zhou (2015), provides an ideal framework with which to capture the overall dependence structure between tourism development and economic growth. The empirical results primarily show a positive relation between tourism and economic growth for the ten countries considered with substantial variations across countries and across quantiles within each country. The weakest links arenoted for China and Germany,possibly because of the limitedimportance of the tourism sector relative to other major economic activities in those countries. Important country-specific policy implications may be drawn from these findings.

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Section: Literature Reviewmentioning

confidence: 95%

Section: Data Descriptionmentioning

confidence: 99%

Tourism-led growth hypothesis in the top ten tourist destinations: New evidence using the quantile-on-quantile approach

et al. 2017

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“…(2014), Kumar (2014), Tang and Tan (2015), Tang and Abosedra (2016) are among the studies that found evidence of bi-directional causality between tourism and economic growth regardless of model specification (i.e. bi-variate, tri-variate or multivariate models).…”

Section: Studies On the Nexus Of Tourism And Economic Growthmentioning

confidence: 99%

“…Tang and Tan (2015) 1975-2011 (A) Malaysia Johansen-Juselius; Granger causality -VECM EG; TOUR; PS; GNS EG  TOUR 40. Tang and Abosedra (2016) 1995 - Katircioğlu (2014a) 1960-2010 (A) Turkey ARDL; IRF; VD EG; EC; TOUR; CO2 TOUR  EC 44. Katircioğlu (2014b) 1971-2010 (A) Singapore Multiple break cointegration test; VD; Granger causality -VECM EG; EC; TOUR; CO2 TOUR  EC 45.…”

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confidence: 99%

Dynamic inter-relationships among tourism, economic growth and energy consumption in India

Tang

Tiwari

Shahbaz

2016

Geosystem Engineering

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This study attempts to explore the dynamic causal and inter-relationships among tourism, economic growth and energy consumption in India. This study covers the annual data from 1971 to 2012. This study applies the cointegration and generalised variance decomposition methods to verify the relationship. The bounds testing approach to cointegration and the Gregory-Hansen test for cointegration with structural break consistently reveal that energy consumption, tourism and economic growth in India are cointegrated. We find that tourism and economic growth strongly affects energy consumption in the long-run. Additionally, we also find that tourism and economic growth in India are inter-related, but the causal effect of tourism on economic growth is stronger than the other way around in both the short-and long-run. Therefore, this study concludes that the tourism-led growth hypothesis is valid but the energy-led growth hypothesis is invalid in India. With such findings, we can confirm that tourism is an important catalyst of growth to the Indian economy. Therefore, policymakers should promote and expand tourism industry in order to sustain the process of economic growth and development in India.Keywords: Cointegration; Economic growth; Energy consumption, Tourism; Variance decomposition 2 INTRODUCTIONOver the past decades, many studies pertaining to the engines of growth have been conducted with respect to developing countries. This is mainly due to the reason that they attempt to find an effective pillar to upgrade their status to developed countries. From our reading, we observe that energy and tourism are two common factors that hotly debated in the economic growth literature. Numerous studies have been conducted to verify the role of energy consumption and tourism in economic growth. However, their efforts failed to find a consistent causal relationship among economic growth, tourism and energy consumption.Some studies suggested that energy consumption and tourism stimulate long-term economic growth (e.g. Lean and Smyth, 2010;Lean and Tang, 2010;Hye and Khan, 2013;Tang and Shahbaz, 2013;Soares et al., 2014;, while other studies claimed the other way around or not related at all (e.g. Cheng, 1999;Ghosh, 2002;Oh, 2005; Katircioğlu, 2009;Alam et al., 2011;Ghosh, 2011;Ozturk and Acaravci, 2009). Therefore, it is very hard to derive a useful guideline for policymakers elsewhere to design appropriate growth policies for their economies.Apart from the ambiguity in the results, almost all existing studies likely to look at the impacts of energy consumption and tourism on economic growth separately, where these variables should be inter-related in nature. For example, tourism-related infrastructures and facilities require energy (e.g. oil and electricity) to operate them and energy is also one of the inputs of production that may link to economic growth. On the other hand, an increase in output and tourism demand such as tourist arrivals would increase the demand for energy.Then, an increase in international touri...

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“…Simultaneously, Egypt needs to improve economic growth for stimulating the influence of the tourism industry. Tang and Abosedra (2016) used multivariate modeling to analyze the causal connection between tourism and economic progress in Lebanon using the bootstrap causality method. They also used Granger causality with a rolling window and observed the validity of the TLGH for the Lebanese economy.…”

Section: Literature Surveymentioning

confidence: 99%

Is tourism‐led growth hypothesis still valid?

Mitra

2019

Journal of Tourism Research

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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.

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Tourism and growth in Lebanon: new evidence from bootstrap simulation and rolling causality approaches

Abstract: A multivariate model incorporating tourist arrivals, real output, and the real exchange rate

Cited by 63 publications

References 56 publications

Tourism-led growth hypothesis in the top ten tourist destinations: New evidence using the quantile-on-quantile approach

Tourism-led growth hypothesis in the top ten tourist destinations: New evidence using the quantile-on-quantile approach

Dynamic inter-relationships among tourism, economic growth and energy consumption in India

Is tourism‐led growth hypothesis still valid?

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