Tourism and environmental performance: New evidence using a threshold regression analysis

2021 ◽  
pp. 135481662110424
Author(s):  
Zhike Lv ◽  
Ting Xu
Keyword(s):  
Environmental Performance ◽  
Negative Impact ◽  
Tourism Development ◽  
Threshold Level ◽  
Optimal Level ◽  
Negative Influence ◽  
Threshold Regression ◽  
Regression Approach ◽  
New Evidence ◽  
Panel Threshold Regression

To verify whether the effect of tourism on environmental performance differs by the level of tourism development, a panel threshold regression approach is applied to observe the effects of tourism on environmental performance in 97 countries over the 2002–2012 periods. Our results suggest that tourism always has a significant negative influence on the environmental performance, implying that tourism will unavoidably result in environmental degradation, irrespective of how high the level of tourism development. However, when tourism development exceeds a certain value, tourism will relatively have less influence on environmental performance. In terms of policy prescriptions, considering that tourism wills inevitably worse environmental qualities, this finding implies that policymakers should consider the optimal level of tourism development at around the estimated threshold level to minimize the negative impact of tourism on environmental quality.

scholarly journals The Fiscal Deficit and Economic Growth in Pakistan: New Evidence

2017 ◽  
Vol 22 (Special Edition) ◽  
pp. 53-72
Author(s):  
Nasir Iqbal ◽  
Musleh ud Din ◽  
Ejaz Ghani
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Negative Impact ◽  
Threshold Level ◽  
Growth Potential ◽  
Smooth Transition ◽  
Series Data ◽  
Fiscal Deficit ◽  
New Evidence

This study revisits the relationship between the fiscal deficit and economic growth in Pakistan to determine whether there exists a threshold fiscal deficit that might serve as a benchmark for policymakers aiming to promote growth through fiscal expansion. We apply the smooth transition autoregressive model to time-series data for the period 1972–2014. The empirical analysis shows that the threshold level of fiscal deficit is 5.57 percent of GDP, above which the deficit has a negative impact on growth. Overall, the fiscal deficit has a negative impact on economic growth, mainly because it has tended to remain above the threshold level. However, there is room for fiscal policy to promote growth, provided the fiscal deficit is kept below the threshold level and public spending is channeled into productive investments that raise the country’s long-term growth potential.

scholarly journals Threshold Effect of Tourism Development on Economic Growth Following a Disaster Shock: Evidence from the Wenchuan Earthquake, P.R. China

2019 ◽  
Vol 11 (2) ◽  
pp. 371 ◽  
Author(s):  
Jun Zhang ◽  
Li Cheng
Keyword(s):  
Economic Growth ◽  
Wenchuan Earthquake ◽  
Fixed Effects ◽  
Industrial Structure ◽  
Tourism Development ◽  
Threshold Effect ◽  
Development Stage ◽  
Threshold Regression ◽  
Fixed Effects Model ◽  
Panel Threshold Regression

To examine whether tourism can effectively stimulate economic growth following a disaster shock, we apply a panel threshold regression technique to test the threshold effect of tourism development on economic growth of the 36 Wenchuan earthquake-affected counties in 2008–2016. The empirical results using the panel fixed-effects model show that tourism significantly contributes to economic growth, supporting the validity of the tourism-led growth hypothesis (TLGH) for the disaster-affected destinations. The results of the panel threshold regression model also indicate a threshold effect of tourism development on economic growth, implying that counties with different conditions of tourism specialization and industrial structure experience different impacts on the tourism-growth nexus. Specifically, the estimated coefficients of tourism on economic growth decrease with the levels of tourism specialization and industrial structure exceeding the threshold value. Based on the Tourism Area Life Cycle theory (TALC), we further divide the 36 disaster-stricken counties into six types based on the evolution of tourism specialization: Exploration-stage type, involvement-stage type, transition-stage type, development-stage type, consolidation-stage type, and stagnation-stage type. The empirical findings and managerial implications discussed are generally applicable to policymakers seeking new ways to invigorate the economy in other disaster-affected destinations.

Is R&D Always Beneficial?

2010 ◽  
Vol 13 (01) ◽  
pp. 157-174 ◽  
Author(s):  
Hsu-Ling Chang ◽  
Chi-Wei Su
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Threshold Value ◽  
Optimal Level ◽  
Electronics Industry ◽  
Sales Growth ◽  
Growth Ratio ◽  
Threshold Regression Model ◽  
The Relationship ◽  
Panel Threshold Regression

This study sets out with the aim of determining whether there is such a thing as an optimal level of research and development (R&D) intensity within which a firm can effectively maximize its sales growth ratio. We adopt an advanced panel threshold regression model to examine the relationship between R&D intensity and the growth rate in sales based upon data on firms within the electronics industry in Taiwan. The results demonstrate that R&D intensity has a positive impact on sales growth when the level of such R&D intensity is below the threshold value, and a negative impact when the level of R&D intensity is above the threshold value.

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