Asymmetric reactions in the tourism-led growth hypothesis

Nikeel Nishkar Kumar; Arvind Patel; Sean Kimpton; Antony Andrews

doi:10.1111/1467-8454.12272

Asymmetric reactions in the tourism-led growth hypothesis

Nikeel Nishkar Kumar
, Arvind Patel
, Sean Kimpton
, Antony Andrews

University of the South Pacific
Auckland University of Technology

Research output: Contribution to journal › Article › peer-review

8 Scopus citations

Abstract

In this study, we test for asymmetries in the tourism-led growth hypothesis. Asymmetric causality tests allow us to examine whether positive or negative changes in tourism cause growth. Our specification is based on an extended Solow growth model and draws from recent articles on tourism and growth. Using Tonga as a case study over the period 1981–2018, we find that tourism asymmetrically Granger causes economic growth. The magnitude of effects from the nonlinear ARDL model shows that economic growth is more sensitive to a downward movement compared to an upward movement in visitor arrivals.

Original language	English
Pages (from-to)	661-677
Number of pages	17
Journal	Australian Economic Papers
Volume	61
Issue number	4
DOIs	https://doi.org/10.1111/1467-8454.12272
State	Published - Dec 2022
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Keywords

Solow model
Tonga
asymmetric causality
nonlinear ARDL
tourism demand
tourism led growth hypothesis

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10.1111/1467-8454.12272

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title = "Asymmetric reactions in the tourism-led growth hypothesis",

abstract = "In this study, we test for asymmetries in the tourism-led growth hypothesis. Asymmetric causality tests allow us to examine whether positive or negative changes in tourism cause growth. Our specification is based on an extended Solow growth model and draws from recent articles on tourism and growth. Using Tonga as a case study over the period 1981–2018, we find that tourism asymmetrically Granger causes economic growth. The magnitude of effects from the nonlinear ARDL model shows that economic growth is more sensitive to a downward movement compared to an upward movement in visitor arrivals.",

keywords = "Solow model, Tonga, asymmetric causality, nonlinear ARDL, tourism demand, tourism led growth hypothesis",

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AU - Kumar, Nikeel Nishkar

AU - Patel, Arvind

AU - Kimpton, Sean

AU - Andrews, Antony

PY - 2022/12

Y1 - 2022/12

N2 - In this study, we test for asymmetries in the tourism-led growth hypothesis. Asymmetric causality tests allow us to examine whether positive or negative changes in tourism cause growth. Our specification is based on an extended Solow growth model and draws from recent articles on tourism and growth. Using Tonga as a case study over the period 1981–2018, we find that tourism asymmetrically Granger causes economic growth. The magnitude of effects from the nonlinear ARDL model shows that economic growth is more sensitive to a downward movement compared to an upward movement in visitor arrivals.

AB - In this study, we test for asymmetries in the tourism-led growth hypothesis. Asymmetric causality tests allow us to examine whether positive or negative changes in tourism cause growth. Our specification is based on an extended Solow growth model and draws from recent articles on tourism and growth. Using Tonga as a case study over the period 1981–2018, we find that tourism asymmetrically Granger causes economic growth. The magnitude of effects from the nonlinear ARDL model shows that economic growth is more sensitive to a downward movement compared to an upward movement in visitor arrivals.

KW - Solow model

KW - Tonga

KW - asymmetric causality

KW - nonlinear ARDL

KW - tourism demand

KW - tourism led growth hypothesis

UR - https://www.scopus.com/pages/publications/85133066341

U2 - 10.1111/1467-8454.12272

DO - 10.1111/1467-8454.12272

M3 - Article

AN - SCOPUS:85133066341

SN - 0004-900X

VL - 61

SP - 661

EP - 677

JO - Australian Economic Papers

JF - Australian Economic Papers

IS - 4

ER -

Asymmetric reactions in the tourism-led growth hypothesis

Abstract

UN SDGs

Keywords

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