Testing the role of tourism and human capital development in economic growth. A panel causality study of micro states

By A. Fahimi, Seyi Saint Akadiri, M. Seraj, Ada Chigozie Akadiri. Tourism Management Perspectives, 2018

159 citations recorded by the source corpus.

Abstract The tourism sector over the years has become an integral part of economic growth strategies and determinants. This study seeks to investigate the contribution of the tourism sector to economic growth of the micro states over the period 1995–2015, using second generation panel approach that accounts for cross-sectional dependence, by incorporating investment in human capital as an additional variable. The causal relationship and interaction between tourism, investment in human capital and economic growth is examined by employing the Granger causality testing approach introduced by Dumitrescu and Hurlin (2012) . Our empirical results provide evidence in support of tourism-induced growth, tourism-induced human capital development and human capital development-induced growth. Over the sampled period, it appears tourism sector has not been contributing substantially to export earnings and economic growth. This might have led the policymakers in these states to diversify their economy from being tourism-dependent to human capital-based.

Subfields: Economics and Econometrics, Sociology and Political Science, Transportation

View Paper: https://www.semanticscholar.org/paper/51b99477647639c6a72884285825ca74a859efb3

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Citations in the corpus

Geopolitical risk and tourism: Evidence from dynamic heterogeneous panel models (2020, methodology): “L refers to natural log, i represents country (i = 1, ..., 16), t stands for the monthly time period (t = 2005M1, ..., 2017M12), βk(k = 1, 2, 3, 4, 5) is the country-specific parameter estimate for the regressors and eit is the error term which includes the following; group fixed effects (αi) that a”
Analyzing the Bidirectional Relationship between Tourism Growth and Economic Development (2020, background): “…works in the scientific literature that analyze this bidirectional relationship between tourism and economic development, the one undertaken by Fahimi et al. (2018), in which the relationship between tourism and economic capital is analyzed in 10 micro-island states, concludes that the…”
Tourism, growth and environment: analysis of non-linear and moderating effects (2020, background): “(2002) test, IPS1⁄4 Im et al. (2003) test, Breitung 1⁄4 Breitung (2000) test, Pesaran (2007) test.”
Examining the causal impacts of tourism, globalization, economic growth and carbon emissions in tourism island territories: bootstrap panel Granger causality analysis (2018, background): “Conclusively, since, internal factors such as tourism and output level appears to be the major factors that contribute to carbon emissions level and hence, environmental pollution in this region, we suggest that policymakers in the quest to maximize their economic growth should diversify their respe”