Economic growth, tourism, and economic policy uncertainty in the main tourist destinations (1998-2018)

Mario Gómez () and Lisset Cándano
Additional contact information
Mario Gómez: Instituto de Investigaciones Económicas y Empresariales, Universidad Michoacana de San Nicolás de Hidalgo. México. Visiting Professor, Departament of Economics, Carleton University, Canada.
Lisset Cándano: Instituto de Investigaciones Económicas y Empresariales, Universidad Michoacana de San Nicolás de Hidalgo, México.

EconoQuantum, Revista de Economia y Finanzas, 2024, vol. 21, issue 1, 71-86

Abstract: Objective: to study the relationship among tourism demand and economic growth, real exchange rate, and economic policy uncertainty (EPU) in Australia, China, France, Germany, Italy, Japan, Spain, the United States, and the United Kingdom. Methodology: cross-section dependence, unit root, and cointegration tests were applied. The long-term model was estimated according to the Panel-Corrected Standard Error (PCSE), Feasible Generalised Least Squares (FGLS), and Ful-ly Modified Ordinary Least Square (FMOLS). Results: the results show a positive relationship between economic growth and the real exchange rate concerning tourism demand. In the long term, the causality relation-ship is from uncertainty, exchange rate, and GDP to tourism. The feedback hypothesis is validated.Limitations: availability of data.Originality: it studies the joint influence of economic growth and the EPU on demand for tourism in the countries of the world’s leading destinations for international tourism ac-cording to international tourist income.Conclusions: tourism will drive general economic growth and, correspondingly, investment in other sectors of the economy will also influence an increase in tourism.

Keywords: tourism; economic growth; uncertainty; causal-ity; panel data; heterogeneous panel. (search for similar items in EconPapers)
JEL-codes: C01 O40 Z30 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://econoquantum.cucea.udg.mx/index.php/EQ/article/view/7315/6800 (application/pdf)
https://econoquantum.cucea.udg.mx/index.php/EQ/issue/view/705

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:qua:journl:v:21:y:2024:i:1:p:71-86

Access Statistics for this article

EconoQuantum, Revista de Economia y Finanzas is currently edited by Isai Guizar Mateos

More articles in EconoQuantum, Revista de Economia y Finanzas from Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia. Contact information at EDIRC.
Bibliographic data for series maintained by Sandra Ivett Portugal Padilla ().