Abstract

 
 
 
 Since the growing interest in the study of the dynamics of tourism and its implications for economic growth, this paper explores the Latin America and the Caribbean case. From the economic regimes’ conception and time series symbolization, we perform a cluster analysis and a posterior causality relationship estimation between economic growth and tourism performance for 22 countries of Latin America and the Caribbean considering the period between 1995 and 2015. Results show the existence of two clusters of countries with similar dynamic behaviour within them. The estimations show a positive causal and unidirectional relationship from economic growth to the tourism industry in the low-performing tourism cluster, and also a positive and bidirectional causal relationship in the high-performing tourism one. JEL codes: C33; C36; Z32.
 
 
 
Highlights
In recent years, the academic field has been interested in investigating the tourism industry, especially in the joint dynamics of tourism and economic growth
This paper proposes a panel data of Latin America and the Caribbean countries to study the dynamic relationships between the tourism industry performance and the economic growth
Some of them are Castro-Nuño et al, 2013; Jiménez García et al, 2015; Brida et al, 2016; Brida et al, 2017; Seetanah et al, 2017; Chingarande & Saayman, 2018; Li et al, 2018; Comerio & Strozzi, 2019; Fonseca & Sánchez-Rivero, 2020. In those in which they are applied in Latin America and the Caribbean countries, some of them found a unidirectional relationship between tourism and economic growth
Summary
The academic field has been interested in investigating the tourism industry, especially in the joint dynamics of tourism and economic growth. This paper proposes a panel data of Latin America and the Caribbean countries to study the dynamic relationships between the tourism industry performance and the economic growth. When measuring tourism industry performance, it might not be the best idea to consider absolute levels, for example, of visitors to each country This indicator includes the country size in terms of area and population. When population is taken into consideration, their results are different: Uruguay received more than 27 times the number of arrivals per inhabitant compared to Brazil (while Brazil received 0.03 arrivals per inhabitant, Uruguay received 0.82).1 It could be appropriate, when considering countries with different size, taking an indicator which incorporates in a better way the industry performance.
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