The role of tourism in the economic growth
This study aims to determine the relationship between the number of tourists, investment, and government spending of tourism to economic growth. The data used are secondary data of 2000-2014 sourced from Central Bureau of Statistics (BPS). The analytical method used is the model Granger causality and a linear regression model. Findings from this study indicate that there is a significant relationship between the number of tourists, tourism investment, and government spending of tourism to economic growth, so it could say that these variables encourage or induce economic growth. The estimation results of regression showed that the number of tourists, tourism investment, and government spending of tourism positive and significant effect on economic growth. This study gives an implication that the government's policy has an essential role in encouraging the development of the tourism sector as this sector can provide added value that is large enough for economic growth.
Balaguer, J., & Cantavella-Jorda, M. (2002). Tourism as a long-run economic growth factor: The Spanish case. Applied Economics, 34, 877-884.
Brida, J.G., Risso, W.A., Lanzilotta, B., & Lionetti, S. (2010). The Tourism-led-Growth Hypothesis for Uruguay. Tourism Economics, 16(3), 765–771. Retrieved from http://papers.ssrn.com/ sol3/papers.cfm?abstract_id=1333102
Brida, J. G., London, S., & Rojas, M. (2013). A Dynamic Model of Tourism and Economic Growth: The Role of Physical and Human Capital. Economics Bulletin, 33(2), 1361–1373.
Caglayan, E., Şak, N., Karymshakov, K., Çaglayan, E., & Sak, N. (2012). Relationship Between Tourism and Economic Growth: a Panel Granger Causality Approach. Asian Economic and Financial Review, 2(5), 591–602.
Metrics powered by PLOS ALM
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Economic Journal of Emerging Markets (EJEM)
ISSN 2086-3128 (print), ISSN 2502-180X (online)
Center for Economic Studies, Department of Economics,
Universitas Islam Indonesia, Indonesia.
EJEM by http://journal.uii.ac.id/index.php/JEP/ is licensed under a Creative Commons Attribution 4.0 International License.