Abstract
We analyse whether tourism (measured by real tourism receipts) causes growth in an asymmetric fashion in a panel of G-7 countries over the period of 1995–2014. Our results reveal that the tourism-led growth hypothesis holds for France, Germany, and the US, with negative tourism shocks being more important for Germany, Italy, Japan, while positive shocks are more important in UK and the US. Our results imply that, policy makers in Germany, Italy and Japan should be more concerned when tourism receipts decline.
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Notes
Balaguer and Cantavella-Jorda (2002), Gunduz and Hatemi-J (2005) and Oh (2005) were among the original studies to investigate the relationship between tourism and economic growth. For detailed literature review on this hypothesis, the reader is referred to (Arslanturk et al. 2011; Balcilar et al. 2014; Antonakakis et al. 2015a, b). For a recent literature review on the tourism-led growth hypothesis see Brida et al. (2016).
The figure is calculated using data from the annual report of UNWTO in 2015. World tourism receipts in 2014 were US$1245 billion and tourism receipts in the advanced economies for that year was US$815 billion.
The data can be accessed online from: http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators.
Complete details of these summary statistics are available upon request from the authors.
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Acknowledgments
We would like to thank two anonymous referees for many helpful comments. This research was partially funded by the UAE University via the UPAR Program.
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Hatemi-J, A., Gupta, R., Kasongo, A. et al. Does tourism cause growth asymmetrically in a panel of G-7 countries? A short note. Empirica 45, 49–57 (2018). https://doi.org/10.1007/s10663-016-9345-3
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DOI: https://doi.org/10.1007/s10663-016-9345-3