Revisiting the Tourism-Led Growth Hypothesis in a Dual Model Using Mwald Granger Causality Analysis

Sung Yu-Chi ()

Asian Economic and Financial Review, 2018, vol. 8, issue 8, 1102-1110

Abstract: This study reinvestigates the tourism-led growth hypothesis in Taiwan by applying the Johansen co-integration and Modified Wald (MWALD) causality tests to long-term data-from 1958 to 2017. We employ both bivariate (international tourist arrivals and real GDP) and trivariate (international tourist arrivals, international tourist expenditures, and real GDP) models. We find that there is a long-run relationship between the three variables, and that there is a unidirectional Granger causality running from economic growth to international tourist arrivals in both bivariate and trivariate models, supporting the tourism-led growth hypothesis. In addition, the existence of bidirectional Granger causality between the real GDP and international tourist expenditures suggests that policymakers should relax regulations to increase tourism flows to promote economic growth.

Keywords: Co-integration; Economic growth; International tourist arrivals; International tourist expenditures; MWALD causality test; Tourism-led growth hypothesis (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://archive.aessweb.com/index.php/5002/article/view/1731/2589 (application/pdf)
https://archive.aessweb.com/index.php/5002/article/view/1731/3774 (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:asi:aeafrj:v:8:y:2018:i:8:p:1102-1110:id:1731

Access Statistics for this article

More articles in Asian Economic and Financial Review from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().