Work

Structural breaks, international tourism development and economic growth

Year: 2019

Type: article

Abstract: This study examines the causal relationships between tourism, physical capital, human capital, household consumption expenditure and economic growth for the period 1981–2014 using Structural Breaks tests, Autoregressive Lag (Distributed A.R.D.L.) approach and Granger causality test. There is one cointegrating relationship between these variables, while the V.E.C.M. comprises both a short- and long-run relation. Tourism has a negative impact on Iranian's economic growth both in the short- and long-run. The results showed there is unidirectional causality running from international tourism to economic growth. Our findings have also empirically verified the presence of the Tourism-Led Growth Hypothesis (T.L.G.H.) in Iran. Tourism could be an effective substance for the growth of the Iranian economy. They showed that tourism is in part an endogenous growth process, requiring a systematic allocation of resources to sustain its development for local and regional economies.

Source: Economic Research-Ekonomska Istraživanja

DOI: 10.1080/1331677x.2019.1638279

Author: Soheila Khoshnevis Yazdi

Institutions: Islamic Azad University, Tehran, Islamic Azad University South Tehran Branch

Language: English

Topic: Diverse Aspects of Tourism Research

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $944