Dynamic relationship between tourism, economic growth, and environmental quality

By Danish, Zhaohua Wang. Journal of Sustainable Tourism, 2018

262 citations recorded by the source corpus.

Abstract In the recent era of globalisation, the tourism sector is growing rapidly and stimulates economic growth across the world, however, the inevitable environmental consequences of tourism cannot be ignored. For sustainable tourism, it is necessary to understand the interrelationship between economic growth, tourism, and environmental quality. Hence, the objective of the current research is to investigate the dynamic relationship between tourism, economic growth, and CO2 emissions from 1995 to 2014 in the context of BRICS economies. A group of econometric tests robust to heterogeneity and cross-sectional dependence is applied to achieve accurate and unbiased results. Empirical findings propose that tourism sector significantly encourages economic growth; however, tourism degrades the quality of the environment. Also, globalisation has a long-term relationship with economic growth but an insignificant relationship with CO2 emissions. The long-term elasticities further recommend that investment stimulate economic growth and mitigate CO2 emissions. Moreover, environmental Kuznets curve (EKC) holds in BRICS countries in its significance to tourism and globalisation. Finally, a heterogeneous panel non-causality test detects bi-directional causality between tourism receipts and CO2 emissions. Moreover, tourism and investment in tourism Granger cause each other. Empirical findings direct towards important policy implications.

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

View Paper: https://www.semanticscholar.org/paper/f3a713dd36269040b6c542f5cc22b4236b69946b

How researchers see this paper

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In Economics and Econometrics

1. Festus Fatai Adedoyin
2. C. Işık
3. Jiekuan Zhang
4. Yan Zhang
5. Munir Ahmad
6. Sezi Aydın
7. Ayşe Ongan
8. Ugur Korkut Pata

In Marketing

1. C. Işık
2. Jiekuan Zhang
3. Ugur Korkut Pata
4. Yan Zhang
5. Serdar Ongan

In Sociology and Political Science

1. C. Işık
2. Jiekuan Zhang
3. Yan Zhang
4. Serdar Ongan

Citations in the corpus

• An Evaluation of the Tourism-Induced Environmental Kuznets Curve (T-EKC) Hypothesis: Evidence from G7 Countries (2020, result): “(2014) [46], Danish and Wang (2018) [47], and Zhang and Gao (2016) [48].”
• Tourism, economic growth, energy consumption, and CO2 emissions in China (2020, methodology): “In different case studies, Balli et al. (2019), Lee and Brahmasrene (2013), and Danish and Wang (2018) all asserted that a positive long-run equilibrium between tourism, GDP, and CO2 emissions exists.”