International Tourism and Economic Growth and Trade: Variance Decomposition AnalysisBahram Shakouri*, Soheila Khoshnevis Yazdi, Niloofar Nategian and Niloofar Shikhrezaei
Department of Economics, College of Economics and Accounting, Islamic Azad University, South Tehran Branch, Tehran, Iran
- *Corresponding Author:
- Bahram Shakouri
Department of Economics
College of Economics and Accounting
Islamic Azad University, South Tehran Branch
Tel: + 98 21 22 56 51 49
E-mail: [email protected]
Received Date: May 15, 2017; Accepted Date: May 22, 2017; Published Date: May 29, 2017
Citation: Shakouri B, Yazdi SK, Nategian N, Shikhrezaei N (2017) International Tourism and Economic Growth and Trade: Variance Decomposition Analysis. J Tourism Hospit 6: 286. doi: 10.4172/2167-0269.1000286
Copyright: © 2017 Shakouri B, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
This study investigates the panel Granger causality relationship approach and variance decomposition to test whether domestic economic growth promote tourists receipts, using international tourism receipts, real GDP per capita growth, exchange rate, financial development, and trade openness for Asian countries over the period of 1995-2014 and whether regional effects should be considered a product of incomes groups in selected Asian countries. Drawing on the selected Asian countries experiments, the empirical investigation of tourism’s contribution to growth indicates that factors, as well as tourism-related factors, are conducive to economic growth. Based on the findings of the Panel Granger tests and variance decomposition analysis, tourism receipts and economic growth should be considered in the analysis, since they provide valuable information for policymakers. The interpretation of the causality test can help providing a tool to allocate limited resources in addition to developing appropriate tourism strategies.