Abstract
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.
Highlights
IntroductionTourism is considered one of the vital driving forces behind economic development
The development of the tourism industry in the Beijing region has resulted in a positive change in terms of economic and social progress over the past few decades
It has enabled the local economy to absorb foreign exchange at a lower cost, as well as helping many other related industries to flourish. Industries such as transportation, insurance, health, banking & finance, and telecom have developed at a rapid pace to accommodate and facilitate the tourism industry
Summary
Tourism is considered one of the vital driving forces behind economic development. One of the largest industries around the globe, is being considered as a new tool for the growth and development of regional economies; tourism has a great impact on socio-economic development. In the case of China, the development of tourism has been rapid and has itself been considered one of the main drivers of the country’s rapid economic growth. In the last three decades, the tourism industry in China has undergone drastic changes, starting from 1978, when government reforms led to the country’s opening to the world. 56 million international tourists have visited China, while domestic tourists were numbering 1.61 billion, and have been increasing over time. Domestic income from tourism in China has been reported at 777.1 billion Yuan. The impact of the tourism industry has given rise to numerous benefits for multiple industries, from tourism-based industries to infrastructural development [20]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
