Tourism Income and Economic Growth in Greece: Empirical Evidence from Their Cyclical Components

Eeckels, Bruno; Filis, George; Leon, Costas

doi:10.5367/te.2012.0148

Cited by 74 publications

(59 citation statements)

References 62 publications

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“…It is thus surprising that, according to the directional spillovers, the relationship between the Greek tourism sector and the national economy is not very strong until 2006 (see Figure 5). This contradicts the findings from previous studies which suggest a strong link between the two variables (Dritsakis, 2012;Eeckels et al, 2012). Between 2006 and 2008 we observe that tourism growth has an increasing effect towards economic growth, while the exact reverse behaviour is observed for economic growth to tourism growth.…”

Section: Greececontrasting

confidence: 99%

“…In particular, it is believed that tourism (i) increases foreign exchange earnings, which in turn can be used to finance imports (McKinnon, 1964), (ii) it encourages investment and drives local firms towards greater efficiency due to the increased competition (Krueger, 1980;Balaguer and Cantavella-Jorda, 2002), (iii) it alleviates unemployment, since tourism activities are heavily based on human capital (Brida and Pulina, 2010) and (iv) it leads to positive economies of scale thus, decreasing production costs for local businesses (Andriotis, 2002;Croes, 2006). Other recent studies which find evidence in favour of the TLEG hypothesis include Sugiyarto et al (2003), Durbarry (2004), Parrilla et al (2007), Croes and Vanegas (2008), Proenca and Soukiazis (2008), Fayissa et al (2011), Pratt (2011), Dritsakis (2012), Eeckels et al (2012), Ivanov and Webster (2013), Surugiu and Surugiu (2013).…”

Section: Introductionmentioning

confidence: 98%

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How strong is the linkage between tourism and economic growth in Europe?

2015

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In this study, we examine the dynamic relationship between tourism growth and economic growth, using a newly introduced spillover index approach. Based on monthly data for 10 European countries over the period 1995-2012, our analysis reveals the following empirical regularities. First, the tourism-economic growth relationship is not stable over time in terms of both magnitude and direction, indicating that the tourism-led economic growth (TLEG) and the economic-driven tourism growth (EDTG) hypotheses are time-dependent. Second, the aforementioned relationship is also highly economic event-dependent, as it is influenced by the Great Recession of 2007 and the ongoing Eurozone debt crisis that began in 2010. Finally, the impact of these economic events is more pronounced in Cyprus, Greece, Portugal and Spain, which are the European countries that have witnessed the greatest economic downturn since 2009. Plausible explanations of these results are provided and policy implications are drawn.

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Section: Greececontrasting

confidence: 99%

Section: Introductionmentioning

confidence: 98%

How strong is the linkage between tourism and economic growth in Europe?

2015

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“…This is consistent to evidences in Italy (Brida et al, 2010), Tunisia (Cortés-Jiménez et al, 2011) and Greek (Eeckels et al, 2012). Consequently, the findings support the tourism-led economic growth hypothesis and are of particular interest and importance to policy makers, financial analysts and investors dealing with the tourism industry Tourism sector plays an important role in the economic development.…”

Section: Jurnal Ekonomi Pembangunan Issn 1411-6081 E-issn 2460-9331supporting

confidence: 89%

Determinants of Demand for Foreign Tourism in Indonesia

Mariyono

2017

JEP

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This study aims to analyse the determinants of foreign tourists coming to Indonesia. Tourism sector is important in Indonesian economy because it is one of potential sources of foreign exchange and promotes economic growth. Decrease in number of domestic tourists is not as important as foreign ones since the later can be a potential source of foreign exchange. Model of travel cost demand for tourism is estimated using panel data, consisting of 34 countries across the globe during 2002-2011. Data were compiled from Indonesian Statistical Agency and the World Bank database. The result shows that distance is a one of significant factors that reduces the number of foreign tourists coming to Indonesia. The richer and larger countries boost greater amount of tourists traveling to Indonesia. Bomb attack reduced the number of foreign tourists. Tourists from western and ASEAN countries were more likely to visit Indonesia than others. Last, the trend of foreign tourists increased after significant fall because of bomb attacks. Indonesian policy should provide a guarantee of safety to tourists in order to attract more arrivals. Increase in such visit will lead to increase in job creation and share of GDP, and eventually strengthen Indonesian economy.

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“…Since then, the first paper that formally confirmed the tourism-led growth hypothesis through cointegration and causality tests for the case of the Spanish economy was published in 2002 (Balaguer & Cantavella-Jordá, 2002). Several other time series studies showing the relationship between tourism and economic growth reported a long run equilibrium relationship and evidence for causality among the variables of interest specifically for southern European Mediterranean countries (Cortés-Jiménez & Pulina, 2010;Dritsakis, 2004;Eeckels, Filis, & Leon, 2012;Gunduz & Hatemi-J, 2005;Katircioglu, 2007;Kim, Chen, & Jang, 2006;Massidda & Mattana, 2013;Nowak, Sahli, & Cortés-Jiménez, 2007).…”

Section: Brief Review Of Earlier Studiesmentioning

confidence: 89%

Tourism and economic growth in Portugal: an empirical investigation of causal links

Bento

2016

TMS

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This study uses quarterly time series for the period from 1995 to 2015 to assess the temporal causal link between tourism and economic growth based on the hypothesis according to which tourism development precedes economic growth. It adopts a disaggregated approach to study the effects of both domestic tourists and foreign tourists on economic growth. Seasonally adjusted tourist arrivals are used to represent tourism activity. This study employs time series cointegration methods that are capable of accommodating structural breaks. The results show that the Portuguese case supports the tourism-led growth hypothesis. There is evidence of a long run cointegration relationship between the real gross domestic product and arrivals at tourist's accommodation establishments of both domestic tourists and foreign tourists. Long run unidirectional Granger causality exists running from domestic tourists to real gross domestic product, but not vice versa. The findings indicate that domestic tourism promotes economic growth. The main policy implication is that policy makers should contribute to tourism development and encourage tourism opportunities in domestic markets by targeting not only foreign tourists, but also domestic tourists to ensure the longterm success and strategic planning of the tourism sector in Portugal.Keywords: Tourism-led growth hypothesis, tourists, cointegration and causality analysis, structural breaks, Portugal. ResumoEste estudo utiliza séries temporais e dados trimestrais para o período de 1995 a 2015 para avaliar a relação de causalidade de Granger entre o turismo e o crescimento económico. O estudo testa a Tourism Led Growth Hypothesis. A variável do turismo no modelo econométrico é desagregada em chegadas dos turistas nacionais e chegadas dos turistas estrangeiros. O estudo faz uma análise da cointegração e causalidade e os testes de raíz unitária têm em conta a possibilidade de existência de quebras estruturais nas séries temporais. A hipótese em questão é válida no caso Português. Existe uma relação de cointegração a longo prazo entre o produto interno bruto e as chegadas dos turistas nacionais e dos turistas estrangeiros em estabelecimentos de alojamento. Existe também uma relação de causalidade a longo prazo entre os turistas nacionais e o produto interno bruto. A mensagem principal deste estudo é salientar o papel dos turistas nacionais na promoção do sector do turismo e do crescimento económico em Portugal. Palavras-chave:Tourism Led Growth Hypothesis, turistas, análise da cointegração e causalidade, quebras estruturais, Portugal.

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Tourism Income and Economic Growth in Greece: Empirical Evidence from Their Cyclical Components

Cited by 74 publications

References 62 publications

How strong is the linkage between tourism and economic growth in Europe?

How strong is the linkage between tourism and economic growth in Europe?

Determinants of Demand for Foreign Tourism in Indonesia

Tourism and economic growth in Portugal: an empirical investigation of causal links

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