Tourism–growth nexus and spatial spillovers: Evidence from Greece

Abstract

In this research note, we reconsider the tourism–growth nexus by accounting for spillover effects between regional tourism development and regional economic growth. For this purpose, we utilize spatial panel econometric techniques to measure the above effects in 49 Greek prefectures during the period 2010–2014. Our findings indicate strong short-run and long-run spillover effects, suggesting that policymakers should consider regional tourism development as a key factor for boosting national economic growth.

Effects of tourism development on economic growth: An empirical study of China based on both static and dynamic spatial Durbin models

“…In addition, whether domestic tourism or inbound tourism and direct effects or spillover effects, this study found that the direction of the long-term effects is consistent with that of the short-term effects, but the strength of the long-term effects is significantly greater than that of the short-term effects, which is consistent with the previous studies (Eleftheriou and Sambracos, 2018;Zhao and Quan, 2011). This is because in the long-term, a multiplier chain effect formed by tourism consumption gradually appears, which promotes an increase in the direct and indirect income of tourism, thereby significantly stimulating economic growth (Zhao and Quan, 2011).…”

“…We further graphed the histogram and the quantile-quantile plot of lnTI (Online Appendix 1), which showed that this variable approximately obeys a normal distribution. Therefore, as in previous studies (Eleftheriou and Sambracos, 2018;Ma et al, 2015;Yang and Filk, 2014), although the standard deviation is greater than the mean, the data still meet the conditions of model parameter estimation, and the results are reliable.…”

“…We suppose that the main reasons why spatial spillover effects occur are as follows. Theoretically speaking, according to new economic geography theory, endogenous growth theory and the spatial attributes of tourism activities, tourism spillover effects are produced mainly through mechanisms such as the labour market sharing, knowledge spillover and market sharing (Eleftheriou and Sambracos, 2018; Li et al, 2017). First, the sharing of human capital between regional travel agencies and hotels has promoted the overflow and learning of tourism knowledge and increased the productivity of tourism enterprises.…”

“…Although some studies consider spatial factors, they often adopt the static spatial panel (see Jiao et al, 2019; Ma et al, 2015), which does not fully consider the spatial lag and time lag effects of tourism development. Recently, even though Eleftheriou and Sambracos (2018) reconsidered the tourism–growth nexus utilizing a dynamic SAR model to measure the spillover effects above effects in 49 Greek prefectures, we think the method setting requires further improvement by applying the more general spatial Durbin model (SDM) on a smaller scale.…”

Revisiting the Relationship Between Tourism and Crime Based on a Dynamic Spatial Durbin Model

“…The results show that city satisfaction exerts a significantly positive, spatial spillover effect on GDP growth in adjacent cities. Eleftheriou and Sambracos (2019) analyzed the tourism–growth nexus by accounting for the spillover effects and verified the existence of spillover effects. Chen et al (2020) investigated the spatial effect of tourism on the regional ecological efficiency and discovered that tourism development exerted different spatial spillover effects across different periods.…”