Abstract
This article aims to examine the impact of tourism on economic growth, a panel co-integration from a community of Portuguese-speaking countries (CPLP). Being one of the leading sectors for economic development for most of the transaction economies, which helps bring down the unemployment rate, bring more foreign currency into the local economy, etc. Therefore, tourism is indispensable for GDP growth for any country; Thus, most of the leaders want to design the best policies as possible to boost this sector. So, the CPLP countries are not left behind when coming to an incentive more and more tourism. This work employs a Fully modified ordinary least squared (FMOLS) and dynamic ordinary least squared (DOLS) and a co-integration technique to test whether there’s a long-term association between expenditure on tourism and growth from 2000 to 2016. The FMOLS and DOLS outcomes show that travelers’ spending exerts a great influence on development for these nations and it causes the long-running association between tourism to growth, which provides that tourism exerts a positive influence on GDP. We conclude this article with some policy recommendations.
Highlights
Tourism is viewed as the main cause of economic expansion for r nations that don‟t have many natural resources or saying developing and transaction economies
This work employs a Fully modified ordinary least squared (FMOLS) and dynamic ordinary least squared (DOLS) and a co-integration technique to test whether there‟s a long-term association between expenditure on tourism and growth from 2000 to 2016
Fayissa et al, (2008) argued that intercontinental travelers have a positive influence on the development of Sub-Saharan African nations: a rise in 10% in travel spending boosts the regions‟ economies by 0.4% per capita income, and tourism leads to growth
Summary
Tourism is viewed as the main cause of economic expansion for r nations that don‟t have many natural resources or saying developing and transaction economies. Tourism as service exports can help states to sustain their economic progress, reduce unemployment (Christie et al, 2014). Another status of tourism activity, it helps nations to equilibrate their balance of payment and producing a high worth of overseas currency receipts; this contributes to the supportable progress of transition economies. Attention has been drawn to tourism as a key factor of growth activities for many nations. Nation-states set out to attract tourism by building new infrastructures such as hotels, resorts, and airports, and by implementing policies to facilitate the inflow of tourism
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