Tourism and Economic Growth in Jordan: Evidence from Linear and Nonlinear Frameworks

Buthaina M. A. Muhtaseb and Hussam-Eldin Daoud
Additional contact information
Buthaina M. A. Muhtaseb: Business Economics Department, Business School, The University of Jordan, Jordan,
Hussam-Eldin Daoud: Economics, Business and Finance Department, Economic and Business Administration college, Mutah University, Jordan.

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 1, 214-223

Abstract: This study investigates cointegration and causal effects between tourism and economic growth (EG) in Jordan. We use quarterly data from 1998Q1 to 2015Q4 on real gross domestic product and real international tourism receipts. Two empirical approaches are employed; Engle and Granger (1987) linear cointegration framework, and the nonlinear framework of Enders and Siklos (2001) cointegration test, in addition to Diks and Panchenko (2006) causality test. Empirical findings reveal the presence of a positive long-run relationship between tourism and EG. According to the linear approach there is a unidirectional causality from tourism to growth, thus, supporting the tourism-led growth hypothesis. Whereas, the nonlinear method, which seems to give more appropriate results, suggests a bidirectional causality, hence, confirming the feedback hypothesis that EG and tourism reinforce each other.

Keywords: Tourism Receipts; Economic Growth; Linear and Nonlinear Frameworks; Jordan (search for similar items in EconPapers)
JEL-codes: C33 F43 L83 O50 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.econjournals.com/index.php/ijefi/article/download/3361/pdf (application/pdf)
http://www.econjournals.com/index.php/ijefi/article/view/3361/pdf (text/html)

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:eco:journ1:2017-01-28

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().