Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Testing tourism-led growth hypothesis in Laos?

Testing tourism-led growth hypothesis in Laos? The purpose of this paper is to investigate the tourism-led growth hypothesis in Laos.Design/methodology/approachThe authors test the tourism-led growth hypothesis using autoregressive distributed lag (ARDL) cointegration estimation (Pesaran et al., 2001) and Granger causality tests.FindingsThe results of this paper show that when tourism is forcing variable, there is no long-run relationship between tourism development and economic growth. The Granger causality test demonstrates that there is a uni-directional causality running from economic growth in tourism.Social implicationsThe empirical results and policy recommendation may be useful for other small developing countries.Originality/valueThis study is the first study to investigate the relationship between tourism development and growth in Laos, using a relatively new econometric approach – ARDL bound testing. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Tourism Review Emerald Publishing

Testing tourism-led growth hypothesis in Laos?

Loading next page...
 
/lp/emerald-publishing/testing-tourism-led-growth-hypothesis-in-laos-zFiGvsAbzA
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1660-5373
DOI
10.1108/tr-03-2017-0034
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to investigate the tourism-led growth hypothesis in Laos.Design/methodology/approachThe authors test the tourism-led growth hypothesis using autoregressive distributed lag (ARDL) cointegration estimation (Pesaran et al., 2001) and Granger causality tests.FindingsThe results of this paper show that when tourism is forcing variable, there is no long-run relationship between tourism development and economic growth. The Granger causality test demonstrates that there is a uni-directional causality running from economic growth in tourism.Social implicationsThe empirical results and policy recommendation may be useful for other small developing countries.Originality/valueThis study is the first study to investigate the relationship between tourism development and growth in Laos, using a relatively new econometric approach – ARDL bound testing.

Journal

Tourism ReviewEmerald Publishing

Published: May 1, 2018

Keywords: Causality; Laos; ARDL cointegration test; Tourism-led growth

References