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Does tourism development promote economic growth in transition countries? A panel data analysis

Year: 2013

Type: article

Abstract: This study examines causal relationships between tourism spending and economic growth in 10 transition countries for the period 1988–2011. Panel causality analysis, which accounts for dependency and heterogeneity across countries, is used herein. Our empirical results support the evidence on the direction of causality, and are consistent with the neutrality hypothesis for 3 of these 10 transition countries (i.e. Bulgaria, Romania and Slovenia). The growth hypothesis holds for Cyprus, Latvia and Slovakia while reverse relationships were found for the Czech Republic and Poland. The feedback hypothesis also holds for Estonia and Hungary. Our empirical findings provide important policy implications for the 10 transition countries being studied.

Source: Economic Modelling

DOI: 10.1016/j.econmod.2013.04.024

Author: Ming Che Chou

Institution: Shih Hsin University

Language: English

Topic: Diverse Aspects of Tourism Research

Subfield: Tourism, Leisure and Hospitality Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,660