Abstract
Most nations are striving to achieve sustainable economic growth. Among the diverse routes explored are tourism and agriculture. This study examines tourism-led growth hypothesis and agriculture-induced growth hypothesis in the context of the world top four agricultural producing economies in a multivariate balanced panel framework between 1995 and 2015. The findings from the bootstrap panel co-integration tests do not support a long-run relationship among the variables. Subsequently, causality test reveals a feedback relationship between international tourism receipt and economic growth. Thus, the tourism-led growth hypothesis is affirmed, while a uni-directional causality runs from agriculture to economic growth. Our findings affirm both the tourism-led and agriculture-led growth hypotheses. Hence, tourism and agriculture sectors are twin growth catalysts in the selected states, that is, both tourism and agriculture sectors have complementary effect on economic growth in the bloc investigated.
Highlights
Tourism has been one of the fastest-growing industries globally, primarily due to its uninterrupted growth in the past decades
This study aims to empirically address the above-mentioned objective since a study that provides a clear insight into tourism-led growth hypothesis (TLGH) in top agricultural producing countries will be of interest to both policy and decision makers
The results mainly reject the null hypothesis of cross-sectional independence and confirm the presence of cross sectional dependency (CSD)
Summary
Tourism has been one of the fastest-growing industries globally, primarily due to its uninterrupted growth in the past decades. Despite occasional shocks and financial crises, the industry has grown over time, RESEARCH NOTE. European Journal of Tourism Research 21, pp. The tourism industry forms an integral part of socioeconomic progress both in developing and developed economies through its inherent ability to create jobs, facilitate enterprise startups, generate export revenues, and promote infrastructural development (Liu & Song, 2018)
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