Open AccessTourism and Economic Growth in G10 Countries
Author(s) -
Uğur Korkut Pata
Publication year - 2021
Publication title -
tourism
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.337
H-Index - 22
eISSN - 1849-1545
pISSN - 1332-7461
DOI - 10.37741/t.69.1.8
Subject(s) - tourism , causality (physics) , economics , order (exchange) , panel data , positive relationship , sustainable development , economic system , macroeconomics , economic geography , econometrics , geography , political science , psychology , social psychology , physics , archaeology , finance , quantum mechanics , law
This study proposes an asymmetric panel causality test to analyze therelationship between tourist arrivals and economic growth. To this end, annualdata over the period 1995–2017 are examined for the G10 countries. The findingsdemonstrate that the relationship between tourism and economic growth variesaccording to positive and negative shocks. In terms of positive shocks, tourismdevelopment causes economic growth. The study also finds a bidirectionalcausality relationship between the negative shocks of the variables. Therefore,positive developments in tourism contribute to economic growth, while negativeevents in tourism impede growth. In sum, tourism is strongly linked to economicactivities in G10 countries, and thus policymakers should attach importance tothe tourism sector in order to support sustainable development.