The Tourism-led Economic Growth Hypothesis in the Euro Area: Do Asymmetries and Structural Breaks Matter?

Dimitrios Bakas, Ioanna Konstantakopoulou () and Athanasios Triantafyllou ()
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Ioanna Konstantakopoulou: Centre for Planning and Economic Research (Greece)
Athanasios Triantafyllou: IESEG School of Management, Univ. Lille (France)

No 20, Working Papers from SITES

Abstract:

This paper examines the validity of the tourism-led economic growth hypothesis for the Euro Area economies. We employ linear and nonlinear autoregressive distributed lag cointegration approaches to examine the symmetric and asymmetric effects of tourism on economic growth. Furthermore, we control for the presence of structural breaks in the time series which account for the recent financial and debt crises in the Euro Area. The results support the positive impact of tourism on economic growth for most of the Euro Area economies and are robust to alternative tourism measures. The findings indicate that an asymmetric impact exists both in the long and the short run. Positive and negative shocks of tourism and real exchange rate result to very different effects, in the sign and magnitude, on economic growth.

Keywords: Tourism-Led Growth Hypothesis; Euro Area; ARDL; Nonlinear ARDL; Structural Breaks (search for similar items in EconPapers)
JEL-codes: C32 E00 F00 L83 O10 O11 Z32 (search for similar items in EconPapers)
Date: 2024-10
New Economics Papers: this item is included in nep-eec, nep-eur, nep-inv and nep-tur
Note: SITES Working Papers 20
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Persistent link: https://EconPapers.repec.org/RePEc:awm:wpaper:20

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