Research Note: Tourism as a Factor of Growth – the Case of Brazil

Juan Brida, Lionello F. Punzo and Wiston Adrián Risso
Additional contact information
Lionello F. Punzo: Department of Economics – Osservatorio per il turismo sostenibile, University of Siena, Siena, Italy
Wiston Adrián Risso: Department of Economics, University of Siena, Siena, Italy

Tourism Economics, 2011, vol. 17, issue 6, 1375-1386

Abstract: International tourism is recognized to contribute to long-run growth through a whole list of diverse channels. This belief that tourism can cause long-run growth is known in the literature as the ‘tourism-led growth hypothesis’. This case study of Brazil can be taken as a specific test for such a hypothesis. In the paper, two different econometric methodologies are applied to two distinct data sets, showing that the results are independent of either data or methodology. On the one hand, annual data from 1965 to 2007 for Brazil as a whole are used for a cointegration analysis to look for the existence of a long-run relationship among variables of economic growth, international tourism earnings and the real exchange rate. On the other hand, high-quality data for the 27 Brazilian states, though for a shorter period (from 1990 to 2005), enable the use of the dynamic panel data model proposed by Arellano and Bond (1991). The authors show that the long-run elasticities between real per capita GDP with respect to tourism receipts and the real rate of exchange are 0.13 and 0.30, respectively. Finally, they compare their results with those of similar studies.

Keywords: economic growth; tourism development; Johansen cointegration test; Granger causality (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://journals.sagepub.com/doi/10.5367/te.2011.0094 (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:sae:toueco:v:17:y:2011:i:6:p:1375-1386

DOI: 10.5367/te.2011.0094

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().