Tourism expansion and economic development: The case of Taiwan

This study examines the causal relationship between tourism expansion and economic development in Taiwan. A Granger causality test is performed following the cointegration approach to reveal the direction of causality between economic growth and tourism expansion. Test results indicate a long-run eq...

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Published inTourism management (1982) Vol. 27; no. 5; pp. 925 - 933
Main Authors Kim, Hyun Jeong, Chen, Ming-Hsiang, Jang, SooCheong “Shawn”
Format Journal Article
LanguageEnglish
Published England Elsevier Ltd 01.10.2006
Subjects
Cointegration
Economic development
Granger causality
Taiwan
Tourism expansion
Tourism expansion
Cointegration
Economic development
Granger causality
Taiwan
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Summary:This study examines the causal relationship between tourism expansion and economic development in Taiwan. A Granger causality test is performed following the cointegration approach to reveal the direction of causality between economic growth and tourism expansion. Test results indicate a long-run equilibrium relationship and further a bi-directional causality between the two factors. In other words, in Taiwan, tourism and economic development reinforce each other. A discussion follows and managerial implications are identified based on the empirical findings.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
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ISSN:0261-5177
1879-3193
DOI:10.1016/j.tourman.2005.05.011