A Panel Cointegration Analysis of the Impact of Tourism on Economic Growth: Evidence from the Middle East Region. (15th October 2013)

• Record Type: Journal Article
• Authors: Saleh, Ali Salman; Assaf, A. George; Ihalanayake, Ranjith; Lung, Sidney
• Is Part Of: International journal of tourism research. Volume 17:Number 3(2015:May/Jun.)
• Page Start: 209
• Page End: 220
• Publication Date: 2013-10-15
• Subjects: Tourism -- Periodicals; 338.4791
• DOI: 10.1002/jtr.1976
• Languages: English
• ISSNs: 1099-2340

Abstract

<abstract abstract-type="main"> <title>Abstract</title> <p>This paper examines the contribution of tourism industry to the GDP of three selected destinations in the Middle East region: Bahrain, Jordan and Saudi Arabia. We introduce a quadratic functional form and apply the advanced panel cointegration dynamic model with robust estimation to test our hypothesis. Our analysis is based on a comprehensive set of panel data of tourism receipts, education investment, foreign direct investment and fixed capital formation over the period of 1981–2008. The results show a long‐run relationship between tourism growth and GDP. We also show that tourism has a stronger impact on the economy than other related sectors. Copyright © 2013 John Wiley &amp; Sons, Ltd.</p> </abstract>