Tourism Services Exports and Economic Growth in Barbados

Troy Lorde, Brian Francis and Lisa Drakes

MPRA Paper from University Library of Munich, Germany

Abstract: This article investigated the relationship between tourism and economic growth in Barbados from 1974–2004 using the techniques of multivariate cointegration, causality testing, and innovation accounting. Findings reveal the existence of a long-run relationship between tourist activity and economic growth. However, the nature of the directional relationship and the importance of the real exchange rate as an important determinant appear to be dependent on how output is specified and the statistical techniques employed. Still, our results provide justification for the Government of Barbados’ objective of investing in its tourism industry as a means of stimulating growth over the long term. As there is an indication that forward and backward linkages are not as fully developed as they could be, and initiatives should also be put in place to foster stronger linkages between the tourism industry and other sectors, such as agriculture, food and beverage, and transportation. It is recommended, though, that policymakers do not over-rely on tourism for economic growth and that they pay greater attention to other industries given the tourism industry’s capricious nature.

Keywords: tourism-led growth hypothesis; Barbados; multivariate cointegration; causality; innovation accounting (search for similar items in EconPapers)
JEL-codes: C22 F43 L83 O47 (search for similar items in EconPapers)
Date: 2009-03-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published in The International Trade Journal 2.25(2011): pp. 205-232

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/95549/1/MPRA_paper_95549.pdf original version (application/pdf)

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:pra:mprapa:95549

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().