The Impact of Tourism on the Economic Growth of African Countries

Tourism has been known to have an impact on the economy of the country. This study aims to identify the effect of tourism on the economic growth of African countries taking annual data from the World Bank from 2003-2013. Pedroni’s Panel Cointegration and Dumitrescu and Hurlin (2012) Granger Causalit...

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Main Author: Arain, Eamaan Azhar
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/41989/
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author Arain, Eamaan Azhar
author_facet Arain, Eamaan Azhar
author_sort Arain, Eamaan Azhar
building Nottingham Research Data Repository
collection Online Access
description Tourism has been known to have an impact on the economy of the country. This study aims to identify the effect of tourism on the economic growth of African countries taking annual data from the World Bank from 2003-2013. Pedroni’s Panel Cointegration and Dumitrescu and Hurlin (2012) Granger Causality test is employed to determine the relationship. In addition, two proxies are used for tourism, tourism receipts and tourism arrivals, to act as robustness tests. The sample is also grouped into island and non-island countries and FMOLS estimation is done to try to determine the elasticities of the variables that are in the study and study whether there is a difference between island or non-island countries. The effect of tourism reliance is also examined by introducing an index that measures tourism reliance. The empirical results indicate that there is a cointegrating relationship between tourism and economic development. In addition, the causality is uni-directional from GDP to tourism in the case of the first proxy for tourism, (tourism receipts) and the causality is bi-directional in the case of the second proxy of tourism (tourism arrivals)
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spelling nottingham-419892017-10-13T01:08:29Z https://eprints.nottingham.ac.uk/41989/ The Impact of Tourism on the Economic Growth of African Countries Arain, Eamaan Azhar Tourism has been known to have an impact on the economy of the country. This study aims to identify the effect of tourism on the economic growth of African countries taking annual data from the World Bank from 2003-2013. Pedroni’s Panel Cointegration and Dumitrescu and Hurlin (2012) Granger Causality test is employed to determine the relationship. In addition, two proxies are used for tourism, tourism receipts and tourism arrivals, to act as robustness tests. The sample is also grouped into island and non-island countries and FMOLS estimation is done to try to determine the elasticities of the variables that are in the study and study whether there is a difference between island or non-island countries. The effect of tourism reliance is also examined by introducing an index that measures tourism reliance. The empirical results indicate that there is a cointegrating relationship between tourism and economic development. In addition, the causality is uni-directional from GDP to tourism in the case of the first proxy for tourism, (tourism receipts) and the causality is bi-directional in the case of the second proxy of tourism (tourism arrivals) 2017 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/41989/1/ArainEamaanAzhar-41989.pdf Arain, Eamaan Azhar (2017) The Impact of Tourism on the Economic Growth of African Countries. [Dissertation (University of Nottingham only)] Africa Tourism Economic Growth Islands and non-islands tourism-led economic growth economic-driven tourism growth Panel Causality Panel Cointegration
spellingShingle Africa
Tourism
Economic Growth
Islands and non-islands
tourism-led economic growth
economic-driven tourism growth
Panel Causality
Panel Cointegration
Arain, Eamaan Azhar
The Impact of Tourism on the Economic Growth of African Countries
title The Impact of Tourism on the Economic Growth of African Countries
title_full The Impact of Tourism on the Economic Growth of African Countries
title_fullStr The Impact of Tourism on the Economic Growth of African Countries
title_full_unstemmed The Impact of Tourism on the Economic Growth of African Countries
title_short The Impact of Tourism on the Economic Growth of African Countries
title_sort impact of tourism on the economic growth of african countries
topic Africa
Tourism
Economic Growth
Islands and non-islands
tourism-led economic growth
economic-driven tourism growth
Panel Causality
Panel Cointegration
url https://eprints.nottingham.ac.uk/41989/