Abstract
Using a dynamic vector error correction model, and catering for dynamism and endogeneity, the present study attempts to address the question on whether tourism development enhances employment in Mauritius using time series data for the period 1988-2014. The results show that indeed tourism expansion has contributed towards boosting direct, indirect and induced employment in both the long run and short run. The findings also demonstrate that investment in the tourism sector positively influences the employment variable. Moreover, a uni-directional causality is found in the investigation running from tourism development to employment creation as a result of the expansion of the tourism sector.
Highlights
Small island economies very often rely on the tourism sector for development
While most empirical papers focus on the study of tourism and economic growth, the present paper takes a different approach and attempt to investigate the link between tourism development and employment created due to the tourism industry in the small island developing state, Mauritius
One can argue that tourism development has contributed towards boosting direct employment, indirect employment and Dependent variable LN_GDP LN_INVT LN_TOU LN_INF FIN Constant
Summary
Small island economies very often rely on the tourism sector for development. The tourism sector generates various benefits in terms of an inflow of foreign currencies and generating economic growth. (2016) Tourism and Employment Spillovers in a Small Island Developing State: A Dynamic Investigation. While most empirical papers focus on the study of tourism and economic growth, the present paper takes a different approach and attempt to investigate the link between tourism development and employment created due to the tourism industry in the small island developing state, Mauritius. The present paper adopts a rigorous dynamic time series analysis namely a dynamic vector error correction model (VECM) to carry out the proposed investigation. Such a procedure will ensure that the dynamic behaviour of the time series under consideration is properly captured, while simultaneously catering for endogeneity and causality issues.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
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 call
