Does tourism promote economic growth? A fractionally integrated heterogeneous panel data analysis

• Jorge V Pérez-Rodríguez ^[1] ; Heiko Rachinger ^[2] ; María Santana-Gallego ^[2]
  1. [1] Universidad de Las Palmas de Gran Canaria

     Universidad de Las Palmas de Gran Canaria

     Gran Canaria, España

     
  2. [2] Universitat de les Illes Balears

     Universitat de les Illes Balears

     Palma de Mallorca, España

     
• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 28, Nº. Extra 5, 2022 (Ejemplar dedicado a: Panel Data Models in Tourism Research), págs. 1355-1376
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • In this article, we analyse whether tourism promotes economic growth using a general dynamic panel data model that incorporates individual and interactive fixed effects and allows for contemporaneous correlation in model innovations. The empirical study is based on quarterly series of GDP and tourist arrivals for 14 European countries covering the period from 1995 to 2019. Results indicate that the case for a positive long-run relationship between tourism and economic growth is rather weak, being slightly stronger for the period prior to the global economic and financial crisis from 2007 to 2010. When applying panel fractional cointegration techniques, we find evidence in favour of the tourism-led growth hypothesis (TLGH) for the full sample mainly for North European countries. For the pre-crisis period, on the other hand, we find evidence in favour of the TLGH for the relevant tourist destinations Spain and France.