Tourism development and economic growth in the Mediterranean countries: evidence from panel Granger causality tests

This study investigated the causality among education, health, and economic growth in Zimbabwe. Causality effects are a thinly explored area in literature, with most studies focusing on bidirectional relationships. Granger causality tests were employed in a Vector autoregressive (VAR) model. Results showed that education Granger causes health improvements, with health improvements in turn fairly associating to Granger cause economic growth in Zimbabwe. Thus, the effect of education on economic growth is not direct, but works through improved health, pointing to the conclusion that health is a transmission mechanism through which education drives economic growth. No feedback effect was established from health to education and from economic growth to education and health. Thus, results suggest the need for a holistic policy approach which integrates education and health policies in a bid to drive economic growth, since education has no effect on economic growth in its own domain, but through health.

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New Evidence of Dynamic Links between Tourism and Economic Growth Based on Mixed-Frequency Granger Causality Tests

Journal of Travel Research ◽

10.1177/0047287517723531 ◽

2017 ◽

Vol 57 (7) ◽

pp. 899-907 ◽

Cited By ~ 13

Author(s):

Han Liu ◽

Haiyan Song

Keyword(s):

Economic Growth ◽

Granger Causality ◽

Large Body ◽

P Value ◽

Mixed Frequency ◽

Causality Tests ◽

Short Run ◽

Empirical Regularities ◽

Granger Causality Tests ◽

The Relationship

The relationship between tourism and economic growth has created a large body of literature investigating the hypotheses of tourism-led economic growth (TLEGH) and economy-driven tourism growth (EDTGH). In this article, we use mixed-frequency Granger causality tests to investigate the relationship between the two types of growth in Hong Kong from 1974 to 2016. Our analysis reveals the following empirical regularities. First, the hidden short-run causality of TLEGH is detected, and EDTGH is proved in the short run and also in the long run when Granger causality tests are performed in a mixed-frequency framework. Second, mixed-frequency Granger tests demonstrate more power in testing the TLEGH and EDTGH via the rejection frequencies (bootstrap p value). Finally, rolling Granger causality tests reveal an unstable relationship between tourism and economic growth in both magnitude and direction, and the relationship is highly economic- and tourism-event-dependent.

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Granger causality tests among openness to international trade, human capital accumulation and economic growth in China: 1952–1999

International Economic Journal ◽

10.1080/10168730600879356 ◽

2006 ◽

Vol 20 (3) ◽

pp. 285-302 ◽

Cited By ~ 16

Author(s):

Wong Hock Tsen

Keyword(s):

Economic Growth ◽

Human Capital ◽

International Trade ◽

Granger Causality ◽

Capital Accumulation ◽

Human Capital Accumulation ◽

Causality Tests ◽

Granger Causality Tests

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Testing the Tourism-Led Growth hypothesis: The case of Malta

Acta Oeconomica ◽

10.1556/aoecon.59.2009.3.4 ◽

2009 ◽

Vol 59 (3) ◽

pp. 331-343 ◽

Cited By ~ 61

Author(s):

S. Katircioglu

Keyword(s):

Economic Growth ◽

Granger Causality ◽

Relevant Literature ◽

International Tourism ◽

Test Results ◽

Causality Test ◽

Mediterranean Countries ◽

Long Run ◽

Equilibrium Relationship ◽

Causality Tests

Tourism-Led Growth (TLG) hypothesis results are inconclusive for Mediterranean countries in the relevant literature. This study contributes to the literature by employing the bounds test for co-integration and Granger causality tests to investigate level relationship and the direction of causality between international tourism and economic growth in the case of Malta. Results reveal that a long-run equilibrium relationship exists between international tourism and economic growth in the case of Malta. On the other hand, Granger causality test results suggest that both the Tourism-Led Growth and output-driven tourism hypotheses can be inferred for Malta since there is bidirectional causation between international tourism and economic growth.

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