scholarly journals Does Tourism Affect Economic Growth of China? A Panel Granger Causality Approach

2021 ◽  
Vol 13 (3) ◽  
pp. 1349
Author(s):  
Yong Su ◽  
Jacob Cherian ◽  
Muhammad Safdar Sial ◽  
Alina Badulescu ◽  
Phung Anh Thu ◽  
...  
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Empirical Support ◽  
Strong Relationship ◽  
Tourism Industry ◽  
Causality Test ◽  
Data Set ◽  
Economic Development And Growth ◽  
The Impact

The main purpose of the current study is to investigate if tourism affects economic growth of China. The data set has been acquired from the Beijing Municipal Bureau of Statistics, and the time span of the data set takes into account a 20-year time period, from 2000 to 2019. To determine the strength of the above-mentioned relationship previous models that have been used for this research are mainly VAR (vector auto-regression) and VECM (vector error correction) models. The VAR and VECM models have been conducted together with the Granger causality test. The internal revenue generated from tourism-related activities is taken as being the main indicator for the tourism industry, while economic growth is determined by GDP (gross domestic product). We support the above-mentioned notion, as we found that a strong relationship exists between the development of the tourism industry and economic growth. Moreover, our analysis also indicates that this industry has a major impact on long-term economic growth in the region as well. This study thus provides further support to the existing literature on the topic of tourism and the impact that tourism-related activities have upon economic development and growth. The existence and the impact of tourism-related activities upon long-term economic growth were confirmed by the results of the VAR models. At the same time, the unidirectional results of VECM models have confirmed the existence of economic growth in the short term. In our case, the cardinal relationship between the development of the tourism industry and the economic growth in the Beijing region of China have managed to provide strong empirical support to the earlier stated notions and to the literature alike.

scholarly journals The impact of agriculture and renewable energy on climate change in Central and East European Countries

2020 ◽  
Vol 66 (No. 10) ◽  
pp. 447-457
Author(s):  
Nicoleta Mihaela Florea ◽  
Roxana Maria Badircea ◽  
Ramona Costina Pirvu ◽  
Alina Georgiana Manta ◽  
Marius Dalian Doran ◽  
...  
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Greenhouse Gas Emissions ◽  
Greenhouse Gas ◽  
Granger Causality ◽  
Granger Causality Test ◽  
Causality Test ◽  
Gas Emissions ◽  
The Impact

According to the objectives of the European Union concerning the climate changes, Member States should take all the necessary measures in order to reduce the greenhouse gas emissions. The aim of this study is to identify the causality relations between greenhouse gases emissions, added value from agriculture, renewable energy consumption, and economic growth based on a panel consisting of 11 states from the Central and Eastern Europe (CEECs) in the period between 2000 and 2017. The Autoregressive Distributed Lag (ARDL) method was used to estimate the long-term relationships among the variables. Also a Granger causality test based on the ARDL – Error Correction Model (ECM) and a Pairwise Granger causality test were used to identify the causality relationship and to detect the direction of causality among the variables. The results obtained reveal, in the long term, two bidirectional relationships between agriculture and economic growth and two unidirectional relationships from agriculture to greenhouse gas emissions and renewable energy. In the short term, four unidirectional relationships were found from agriculture to all the variables in the model and one unidirectional relationship from renewable energy to greenhouse gas emissions.

scholarly journals Impact of FDI on Provincial Economic Growth in Vietnam

2014 ◽  
Vol 221 ◽  
pp. 65-84
Author(s):  
THÀNH SỬ ĐÌNH ◽  
Tiến Nguyễn Minh
Keyword(s):  
Economic Growth ◽  
Human Resources ◽  
Granger Causality ◽  
Trade Openness ◽  
Private Investment ◽  
Granger Causality Test ◽  
Controversial Issue ◽  
Causality Test ◽  
The Impact

The impact of foreign direct imvestment (FDI) on economic growth is still a highly controversial issue as remarked by many researchers (Aitken et al.; 1997; Carkovic & Levine, 2002; Bende-Nabende et al., 2003; Durham, 2004; and Hsiao, 2006). Using a panel dataset of 43 provinces in Vietnam during 1997 – 2012 and the Granger causality test by Arellano-Bond GMM and PMG estimation, this paper shows that: (i) FDI does Granger-cause private investment, human resources, taxation, infrastructure, trade openness and local technology; (ii) FDI has a positive impacts on provincial economic growth in the long term; and (iii) FDI flows vary over provinces due to differences in geographical conditions and level of development.

scholarly journals Government Size and Economic Growth: A Review of International Literature

SAGE Open ◽  
2019 ◽  
Vol 9 (3) ◽  
pp. 215824401987720 ◽  
Author(s):  
Sheilla Nyasha ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Granger Causality ◽  
Empirical Support ◽  
Time Frame ◽  
Government Size ◽  
International Literature ◽  
Data Set ◽  
Clear Cut ◽  
Study Methodology

In this article, we survey the existing literature on the causal relationship between government size and economic growth, highlighting the theoretical and empirical evidence from topical work. To our knowledge, this study may well be the first study of its kind to survey, in detail, the existing literature on the causal relationship between government size and economic growth—in all the countries, whether developing or developed. By and large, our study shows that direction of causality between these two variables has four possible outcomes, and that all the outcomes have found empirical support, based on variations in the country or region under study, methodology, proxies, data set used, and time frame considered. However, of the four, the most prominent is the second view, which validates unidirectional Granger-causality from economic growth to government size, followed by the bidirectional Granger-causality category. The study, therefore, concludes that the causal relationship between government size and economic growth is far from being clear-cut.

scholarly journals TRADE OPENNESS AND ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM INDIA

2014 ◽  
Vol 16 (1) ◽  
pp. 188-205 ◽  
Author(s):  
Qazi Muhammad Adnan Hye ◽  
Wee-Yeap Lau
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Granger Causality ◽  
Trade Openness ◽  
Granger Causality Test ◽  
Causality Test ◽  
Long Run ◽  
Rolling Window ◽  
Short Run ◽  
The Impact

The main objective of this study is to develop first time trade openness index and use this index to examine the link between trade openness and economic growth in case of India. This study employs a new endogenous growth model for theoretical support, auto-regressive distributive lag model and rolling window regression method in order to determine long run and short run association between trade openness and economic growth. Further granger causality test is used to determine the long run and short run causal direction. The results reveal that human capital and physical capital are positively related to economic growth in the long run. On the other hand, trade openness index negatively impacts on economic growth in the long run. The new evidence is provided by the rolling window regression results i.e. the impact of trade openness index on economic growth is not stable throughout the sample. In the short run trade openness index is positively related to economic growth. The result of granger causality test confirms the validity of trade openness-led growth and human capital-led growth hypothesis in the short run and long run.

scholarly journals Contribution of Tourism Industry in Indian Economy: an Analysis

2020 ◽  
Vol 8 (6) ◽  
pp. 1994-2000
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Least Squares Method ◽  
Strong Relationship ◽  
Ordinary Least Squares ◽  
Tourism Industry ◽  
Indian Economy ◽  
Foreign Tourism ◽  
Travel Industry ◽  
The Impact

The tourism and travel industry is the biggest and most diverse industry in the universe. The impact of tourism on increasing employment and foreign exchange earnings, the boom in domestic industries, the expansion of international cooperation have changed the attitudes of countries around the world and played an important role in the policymaking of Governments. So the purpose of this research paper is to investigate the Impact of Foreign Tourism Receipts growth on the growth rate economic in Indian economy during the period of 2000-2019. In this study we are using the Ordinary Least Squares method (OLS method).The results show that there is a positive relationship between economic growth rate and growth of foreign tourism revenue growth but this relationship is very weak its mean that the impact of the growth of foreign tourism receipt on economic growth is less; We can also say that there is no strong relationship between these two variables.

scholarly journals Influence of Exchange Rate on Foreign Direct Investment Inflows: An Empirical Analysis Based on Co-Integration and Granger Causality Test

2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Lan Tan ◽  
Yifan Xu ◽  
Alemayehu Gashaw
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Granger Causality ◽  
Direct Investment ◽  
Close Association ◽  
Causality Test ◽  
Fdi Inflows ◽  
The Exchange Rate

Although it is widely recognized that Foreign Direct Investment (FDI) inflows have a dominant effect on economic growth of host countries, the determinants of FDI inflows are still unclear. Especially, about the effect of exchange rate on FDI inflow, the results reached by scholars vary across countries or regions. It is of great practical and theoretical significance to explore the influencing effects of exchange rate on FDI inflow and identify the mechanisms that underlie them in close association with regional economic characters so as to help local government implement targeted government policies to achieve sustainable FDI inflow and sustainable economic growth. For this purpose, the influencing effects and the influencing mechanisms of the exchange rate on FDI inflows are investigated for Zhejiang province, China, over 1985–2019 by employing the co-integration tests, vector error correction models, Granger causality tests, and impulse response tests. Empirical results indicate that there are long-term stable and unidirectional causal relationship between the exchange rate and FDI inflow. Continuous appreciation of RMB against USD discourages FDI inflow. The mechanism which underlies the long-term relationship is the wealth effect, rather than the cost effect or the demand effect. By contrast, in the short run, neither the exchange rate nor the three influencing mechanism has a significant impact on FDI inflow. These results suggest policy recommendations for improving FDI by accumulating human capital and improving infrastructure. These findings are also applicable for other countries or regions with similar economic characters.

scholarly journals Empirical Investigation of Capital Flight and Illicit Financial Flows, Economic Growth in Palestine

2019 ◽  
pp. 1-15
Author(s):  
Nemer Badwan ◽  
Mohammed Atta
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
The State ◽  
Balance Of Payments ◽  
Capital Flight ◽  
Causality Test ◽  
Financial Flows ◽  
Study Results ◽  
Illicit Financial Flows ◽  
The Impact

In the present study was to verify the relationship between capital flight and illicit financial flows, exhibiting the impact of stable economic growth in Palestine during the period (2009-2018). We also use models of the balance of payments of the State, the study results showed that the total illicit financial flows, about $14.42 million annually, 16.4% of GDP. In addition, through the application of the net omissions and style error in the balance of payments and expenditures, the total capital flight estimated at $26.61 million, 19.6% of GDP. The Granger causality test shows that economic growth granger causes both the illicit financial flows and the capital flight. The study also found that there is a negative and significant relationship between economic growth and capital flight. Furthermore, there is a positive relationship between illicit financial flows and capital flight. We have examined theory (Granger) causality, which shows that economic growth causes all of the illegal financial flows and capital flight. The study showed also negative correlation and significant between economic growth and capital flight. Besides, it can be this relationship is negative between illicit financial flows and capital flight. This relationship can be detailed in this research. It seems this experimental investigation is also a strong relationship and engagement between capital flight and financial flows from the standpoint of their impact on economic growth in Palestine. It can be summarized in the study that the process of capital flows and capital flight represent an important role in raising the rate of economic recovery in the country and that the flow of capital within the state is one of the most important factors for national economic growth.

scholarly journals Tax revenue, expenditure, and economic growth: An analysis of long-run relationships

2017 ◽  
Vol 24 (03) ◽  
pp. 04-26
Author(s):  
Lien Nguyen Phuong ◽  
Thanh Su Dinh
Keyword(s):  
Economic Growth ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Tax Revenue ◽  
Dynamic Panel ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Impact

Focusing on the investigation of “long-term” relationship between tax revenue, expenditure, and economic growth, this paper employs the Granger causality test and finds that the linkage between tax revenue and spending is a bi-directional causal correlation. Furthermore, applying Persyn and Westerlund’s (2008) co-integration test allows for corroboration of existence of long-run cointegration linkages among outcome of economy and the three variables. In addition, by adopting two-step system generalized method of moments (SGMM) for a dynamic panel of 82 developed and developing countries during 16-year period (2000–2015), this research demonstrates that the impact of tax revenue and spending is substantial and ambiguous, depending on different groups of economies.

scholarly journals The Robust Causal Relationships Among Domestic Tourism Demand, Carbon Emissions, and Economic Growth in China

SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110544
Author(s):  
Yonglian Wang ◽  
Lijun Wang ◽  
Han Liu ◽  
Yongjing Wang
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Carbon Emissions ◽  
Granger Causality Test ◽  
Tourism Industry ◽  
Total Carbon ◽  
Causal Relationships ◽  
Causality Test ◽  
Domestic Tourism ◽  
Tourism Revenue

Green and low-carbon development has become a compelling trend of our time. To formulate policies for development and also reduction of carbon emissions, quantifying the trend of tourism in green sustainable development is an essential issue for China, which is undergoing an economic transformation. This study first measured China’s domestic tourism carbon emissions through a bottom-up approach and then used the robust Granger causality test on annual data from 1993 to 2019 to investigate the relationships among China’s domestic tourism revenue, carbon emissions, and economic growth. The empirical results show that: (1) Carbon emissions of the domestic tourism industry are growing steadily, and the carbon emissions of the transportation industry determine the trend of the total carbon emissions of the domestic tourism industry, (2) long-term equilibrium relationships exist among China’s domestic tourism, carbon emissions, and economic growth, and (3) bidirectional causal relationships among economic growth, carbon emissions, and domestic tourism revenue have been detected with the robust Granger causality test, and the time-varying causal relationships may change markedly in these times of significant events and policy changes. Therefore, policymakers should coordinate the relationships among domestic tourism revenue, carbon emissions, and economic growth, in an effort to promote the development of sustainable tourism in China.

Can conventional energy be replaced by renewable energy without harming economic growth in non-oil-MENA? Evidence from Granger causality in VECM

2019 ◽  
Vol 15 (2) ◽  
pp. 159-168
Author(s):  
Badry Hechmy
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Granger Causality ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Content Type ◽  
Investigation Methods ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between renewable energy consumption and economic growth in non-oil countries in the Middle East and North Africa (non-oil-MENA) during the period from 2000 to 2014. The Pedroni (2000) test shows that there is a long-term cointegration relationship between those variables; however, the Granger causality test in the vector error correction model (VECM) shows that this relationship is bidirectional in the short and long term. Thus, to ensure sustainable economic growth without pollution and to reduce dependence on abroad, renewable energies can be chosen as substitutes for conventional energies in the non-oil-MENA countries. Design/methodology/approach First, LLC and IPS unit root tests are used to test the variables stationarity; and, second, Pedroni panel cointegration and Engle–Granger causality by VECM analysis are used to check the relationship between the studied variables. Findings Empirical results show that the renewable energy consumption and economic growth are cointegrated and that there are two-way causal relationships between them in the long and in the short term. These countries must therefore encourage the consumption of renewable energy instead of traditional energy to reduce their dependence on energy from abroad and CO2 pollution. Originality/value The originality of this work lies in the measurements of the study variables and the empirical investigation methods used.

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