Tourism and economic growth: A global study on Granger causality and wavelet coherence

PLoS One. 2022 Sep 12;17(9):e0274386. doi: 10.1371/journal.pone.0274386. eCollection 2022.

Abstract

This paper empirically investigates the relationship between tourism and economic growth by using a panel data cointegration test, Granger causality test and Wavelet coherence analysis at the global level. This analysis examines 105 nations utilising panel data from 2003 to 2020. The findings indicates that in most regions, tourism contributes significantly to economic growth and vice versa. Developing trade across most of the regions appears to be a major influencer in the study, as a bidirectional association exists between trade openness and economic growth. Additionally, all regions other than the American region showed a one-way association between gross capital formation and economic growth. Therefore, it is crucial to highlight that using initiatives to increase demand would advance tourism while also boosting the economy.

MeSH terms

  • Carbon Dioxide / analysis
  • Causality
  • Economic Development*
  • Tourism*
  • United States

Substances

  • Carbon Dioxide

Grants and funding

The authors received no specific funding for this work.