Does Tourism Development Matter for the Economic Growth of Southeast Asian Countries?


Tourism can be a positive trigger to stimulate economic activities and growth. This study examined the relationships between domestic tourism spending, international tourism receipts and the economic growth of eight Southeast Asian countries from 1995-2018 using a Pedroni cointegration test, fully-modified OLS (FMLOS), dynamic OLS (DOLS) and Granger causality tests. The results showed a strong long-term relationship between economic growth, domestic tourism spending and international tourism receipts. Based on the results, Southeast Asian countries should increase tourism development to improve economic growth.

Keywords: economic growth, domestic tourism, international tourism, tourism development

[1] Akpolat,A.G.(2014).TheLong-TermImpactofHumanCapitalInvestmentonGDP:APanelCointegrated Regression Analysis. Economics Research International.Volume 2014.pp 1-10

[2] Brau, R., Lanza, A. and Pigliaru, F. (2007). How Fast are Small Tourism Countries Growing? Evidence from the Data for 1980-2003. Tourism Economics.13(4), 603-613.

[3] Brida,J.G.,MatesanzGómez,D.andSegarra,V.(2020).OntheEmpiricalRelationshipBetweenTourism and Economic Growth. Tourism Management.81, 104131.

[4] Chatziantoniou, I., et al. (2013). Oil Prices, Tourism Income and Economic Growth: A Structural VAR Approach for European Mediterranean countries. Tourism Management.36, 331-341.

[5] Chou, M. C. (2013). Does Tourism Development Promote Economic Growth in Transition Countries? A Panel Data Analysis. Economic Modelling.33, 226-232.

[6] Dwyer, L., Forsyth, P. and Spurr, R. (2004). Evaluating Tourism’s Economic Effects: New and Old Approaches. Tourism Management. 25(3), 307-317.

[7] Eugenio-Martin, J. L., Martín Morales, N. and Scarpa, R. (2004). Tourism and Economic Growth in Latin American Countries: A Panel Data Approach. Milan:In FEEM Working Paper No. 26.

[8] Giaoutzi, M. and Nijkamp, P. (2017). Tourism and Regional Development: New Pathways. In Tourism and Regional Development: New Pathways (1st ed.).New York: Routledge.

[9] Kadir, N. and Jusoff, K. (2010). The Cointegration and Causality Tests for Tourism and Trade in Malaysia. International Journal of Economics and Finance.2(1), 138-143.

[10] Kim, H. J., Chen, M. H. and Jang, S. C. S. (2006). Tourism Expansion and Economic Development: The Case of Taiwan. Tourism Management, Vol.5 issue 27, pp. 925–933.

[11] Kreishan, F. (2011). Time-Series Evidence for Tourism-Led Growth Hypothesis: A Case Study of Jordan. International Management Review, Vol.1 issue 7, pp. 89–93.

[12] Lanza, A. and Pigliaru, F. (2000). Tourism and Economic Growth: Does Country’s Size Matter? Rivista Internazionale Di Scienze Economiche e Commerciali, vol. 47, issue 1, pp. 77–85.

[13] Lean, H. H. and Tang, C. F. (2010). Is the Tourism-Led Growth Hypothesis Stable for Malaysia? A Note. International Journal of Tourism Research, vol. 12, issue 4, pp. 375–37.

[14] Lee, C. C., & Chang, C. P. (2008). Tourism development and Economic Growth: A Closer Look at Panels. Tourism Management. 29(1), 180-192.

[15] Lee, C. C. and Chien, M. S. (2008). Structural Breaks, Tourism Development, and Economic Growth: Evidence from Taiwan. Mathematics and Computers in Simulation. 77(4), 358-368.

[16] Levin, A., Lin, C. F. and Chu, C. S. J. (2002). Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties. Journal of Econometrics, vol. 108, issue 1, pp. 1–24.

[17] Modeste, N. (1995). The Impact of Growth in the Tourism Sector on Economic Development: The Experience of Selected Caribbean Countries. Economia Internazionale /International Economics, vol. 48, issue 3, pp. 375–385.

[18] Mowforth, M. and Munt, I. (2015). Tourism and Sustainability: Development, Globalisation and New Tourism in the Third World (4th ed.). New York: Routledge

[19] Nunkoo, R., et al. (2020). Tourism and Economic Growth: A Meta-regression Analysis. Journal of Travel Research. 59(3), 404-423.

[20] Ridderstaat, J., Croes, R. and Nijkamp, P. (2014). Tourism and Long-Run Economic Growth in Aruba. International Journal of Tourism Research, vol. 16, pp. 472–487.

[21] Schubert, S. F., Brida, J. G. and Risso, W. A. (2011). The Impacts of International Tourism Demand on Economic Growth of Small Economies Dependent on Tourism. Tourism Management.32(2), 377-385.

[22] Tang, C. F. (2011). Is the Tourism-Led Growth Hypothesis Valid for Malaysia? A View from Disaggregated Tourism Markets. International Journal of Tourism Research,13(1). pp. 131–151.

[23] The General Assembly of United Nations. (2015). Transforming our World: the 2030 Agenda for Sustainable Development. Retrieved from A/RES/70/1&Lang=E.[1 January 2021]

[24] Tugcu, C. T. (2014). Tourism and Economic Growth Nexus Revisited: A Panel Causality Analysis for the Case of the Mediterranean Region. Tourism Management, Vol.42 issue 42, pp. 207–212.

[25] Vangeas Sr, M. and Croes, R. R. (2003). Growth, Development and Tourism in a Small Economy: Evidence from Aruba. International Journal of Tourism Research,5(5), 315-330. pp. 315–330.

[26] Winarno, W. W. (2015). Analisis Ekonometrika dan Statistika dengan Eviews. Yogyakarta: UPP STIM YKPN.