Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7422239 | Tourism Management | 2015 | 6 Pages |
Abstract
This study attempts to further verify the validity of the tourism-led growth hypothesis in Malaysia using a multivariate model derived from the Solow growth theory. It employs annual data from 1975 to 2011. We find that economic growth, tourism and other determinants are cointegrated. Specifically, tourism has a positive impact on Malaysia's economic growth both in the short-run and in the long-run. The Granger causality test indicates that tourism Granger-causes economic growth. All this provides the empirical support for the tourism-led growth hypothesis in Malaysia. In light of this, any policy initiative that promotes tourism could contribute to Malaysia's economic growth.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Strategy and Management
Authors
Chor Foon Tang, Eu Chye Tan,