Open AccessThe Effect of Tourism Development on Economic Growth in Taiwan: Export Growth as Mediator
Author(s) -
Tzu-Kuang Hsu,
I-Hsun Tsai
Publication year - 2020
Publication title -
international journal of circuits, systems and signal processing
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.156
H-Index - 13
ISSN - 1998-4464
DOI - 10.46300/9106.2020.14.58
Subject(s) - tourism , mediation , recession , economics , economic geography , development economics , political science , macroeconomics , law
- In this paper, we employed an innovative method, calleda quantile mediation analysis, which combines a quantileregression and mediation analysis to examine the impact oftourism development on economic growth whether throughexport growth or not from 1990 to 2018 in Taiwan. The result ofthe traditional ordinary least square approach shows thatTaiwan’s tourism development affects economic growth throughthe full mediation effect of export growth for the period of 1990-2018 and there is no direct relation from tourism development toeconomic growth. Moreover, the results of this innovativeanalysis indicate that Taiwan’s tourism development also affectseconomic growth through the full mediation effect of exportgrowth at below 0.6 distributions of economic growth, but atabove 0.6 distributions of economic growth, there exist direct andpartially indirect effect from tourism development to economicgrowth. From the results, we suggest that Taiwan’s governmentshould focus on the export growth if she wants to promoteTaiwan’s economic growth when the economy is in a recession,not focus on tourism development.