Tourism and economic growth: a panel data analysis for Pacific Island countries

• Paresh Kumar Narayan ^[1] ; Seema Narayan ^[2] ; Arti Prasad ^[3] ; Biman Chand Prasad ^[4]
  1. [1] Deakin University

     Deakin University

     Australia

     
  2. [2] Royal Melbourne Institute of Technology University

     Royal Melbourne Institute of Technology University

     Australia

     
  3. [3] Monash University

     Monash University

     Australia

     
  4. [4] University of the South Pacific

     University of the South Pacific

     Fiyi

     

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• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 16, Nº. Extra 1, 2010 (Ejemplar dedicado a: Special Focus: The Economics of Tourism – New Directions), págs. 169-183
• Idioma: inglés
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• Resumen

  • The contribution of tourism to the economic growth of Pacific Island countries (PICs) has achieved significance in the past decade. The shift in the economic policies of the PICs from the late 1980s has been decisively away from import substitution and agriculture to urban-based manufacturing and services sectors. Tourism is the main component of the services sector in the PICs. The contribution of tourism to economic growth in Fiji, Tonga, the Solomon Islands and Papua New Guinea is expected to grow. The authors use panel data for the four PICs to test the long-run relationship between real GDP and real tourism exports. They find support for panel cointegration and the results suggest that a 1% increase in tourism exports increases GDP by 0.72% in the long run and by 0.24% in the short run.