The Greek tourism-led growth revisited: insights and prospects

Sarantis Lolos, Panagiotis Palaios and Evangelia Papapetrou ()
Additional contact information
Panagiotis Palaios: National and Kapodistrian University of Athens
Evangelia Papapetrou: Bank of Greece and National and Kapodistrian University of Athens

No 289, Working Papers from Bank of Greece

Abstract: The paper investigates empirically the tourism-growth relationship in Greece, over the period 1960-2020. We find that the long-run relationship between tourism and output is positive and is characterized by a substantially faster convergence of output after a negative shock than after a positive one. Using asymmetric error-correction model analysis the results show that the short-term adjustment path occurs through the level of output for negative deviations from the long-run equilibrium, thus supporting the tourism-led growth hypothesis. Linear quantile regression analysis indicates that while the impact of tourism remains positive and significant across the output distribution it is stronger at lower quantiles of output than at higher ones. Our results have important policy implications, since the tourism-led growth hypothesis is a useful policy recommendation, but it should not be considered a cure-all policy.

Keywords: tourism; economic growth; tourism-led growth hypothesis; threshold cointegration approach; quantile regression approach. (search for similar items in EconPapers)
JEL-codes: C21 C24 F43 L83 (search for similar items in EconPapers)
Pages: 23
Date: 2021-02
New Economics Papers: this item is included in nep-tur
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.bankofgreece.gr/Publications/Paper2021289.pdf Full Text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bog:wpaper:289

Access Statistics for this paper

More papers in Working Papers from Bank of Greece Contact information at EDIRC.
Bibliographic data for series maintained by Anastasios Rizos ().