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Economic Growth and Tourism in Barbados: A Test of the Supply-side Hypothesis

Mahalia Jackman and Troy Lorde ()

MPRA Paper from University Library of Munich, Germany

Abstract: The goal of this study is to examine the supply side hypothesis of tourism demand, that is, to answer the question: Does economic growth in Barbados spur tourism growth. Results suggest that there is a long-run relationship between real GDP in Barbados and tourist arrivals. Specifically, we find that a 1% expansion in real GDP is associated with a 1.2% increase in tourist arrivals. Further, our Granger causality test suggests that the supply-side hypothesis is valid for Barbados.

Keywords: tourism; economic growth; Barbados (search for similar items in EconPapers)
JEL-codes: C22 L83 O47 O54 (search for similar items in EconPapers)
Date: 2009-09-27
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Published in Tourismos 2.7(2012): pp. 203-215

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Handle: RePEc:pra:mprapa:95548