Article Sidebar

Submitted
April 1, 2017
Accepted
March 6, 2018
Published
March 8, 2018
Download
PDF
Statistic
Read Counter : 5041 Download : 3322

Downloads

Download data is not yet available.

Main Article Content

Abstract

This study analyzes the relationship between the number of tourists, tourism investment, government tourism spending, and economic growth in South Sumatra. It uses Granger causality model and simultaneous equation model to estimate the empirical model. The findings show that the number of tourists, the added value of the tourism sector, and the tourism spending of the tourism sector affect economic growth, while tourism investment does not affect the economic growth. In the second model, this study found that economic growth, tourism added value, tourism, and government tourism spending affect the number of tourists. This study implies that government policy has an important role in encouraging the tourism sector development which is indicated the contribution this sector on economic growth.

Keywords

tourists investment of tourism government spending of tourism and economic growth

Article Details

License

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).

Creative Commons License

Economic Journal of Emerging Markets by Center for Economic Studies, Universitas Islam Indonesia is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Author Biographies

Suhel Suhel, Department of Development Economics, Universitas Sriwijaya

Department of Economic & Development

Abdul Bashir, Department of Development Economics, Universitas Sriwijaya

Department of Economic & Development
How to Cite
Suhel, S., & Bashir, A. (2018). The role of tourism toward economic growth in the local economy. Economic Journal of Emerging Markets, 10(1), 32–39. https://doi.org/10.20885/ejem.vol10.iss1.art4
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Balaguer, J., & Cantavella-Jorda, M. (2002). Tourism as a long-run economic growth factor: The Spanish case. Applied Economics, 34, 877-884.
  2. 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
  3. 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.
  4. 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.
  5. Cortes-Jimenez, I., Pulina, M., Prunera C.M., & Artis, M. (2009). Tourism and Exports as a means of Growth. Research Institute of Applied Economics: Working Papers, (10): 1–28. Retrieved from http://dialnet.unirioja.es/servlet/articulo?codigo=3005929&orden= 216448&info=link
  6. Chang, C., T. Khamkaev., & M. McAleer. (2010). Estimation of a Panel Threshold Model of Tourism Specialization and Economic Development. Social Science Research, (14) http://ssrn.com/abstract=1583242 or http://dx.doi.org/10.2139/ssrn.1583242.
  7. De Mello-Sampayo, F., & De Sousa-Vale, S. (2010). Tourism and Growth in European Countries: An Application of Likelihood-Based Panel Cointegration. Working Papers, (0510), ISCTE, UNIDE, Economics Research Centre.
  8. Durbarry, R. (2004). Toruism and Economic Growth: The Case of Mauritius. Tourism Economic, 10(4): 389-401.
  9. Dritsakis, N. (2004). Tourism as a long-run economic growth factor: An empirical investigation for Greece using causality analysis. Tourism Economics, 10(3), 305–316. https://doi.org/ 10.5367/0000000041895094
  10. Dritsakis, N. (2009). Tourism Development and Economic Growth in Seven Mediterranean Countries : a Panel Data Approach. (Accessed, December 18, 2016)
  11. Eugenio-Martin, J.L., Morales, N.M., & Scarpa, R. (2004). Tourism and economic growth in Latin American countries: a panel data approach. Social Science Research Network Electronic Paper Collection, (26): 1-20. http://papers.ssrn.com/sol3/papers.cfm? abstract_id= 504482. (Accessed, December 21, 2016)
  12. Fayissa, B., Nsiah, C., & Tadesse, B. (2009). Tourism and Economic Growth in Latin American Countries (LAC): Further Empirical Evidence, Department of Economics and Finance Working Paper Series, 1-26. http://capone.mtsu.edu/berc/working/Tourism LAC03-5-09WP.pdf, (Accessed, December 11, 2016)
  13. Gunduz L., A. Hatemi-J., (2005). Is the Tourism-led Growth Hypothesis Valid for Turkey?. Applied Economics Letters. 12, 499-504
  14. Granger, C. (1988). Some recent Developments in a Concept of Causality. Journal of Econometrics, 39, 199-211.
  15. Hanafiah H., Faruoka, F., Munir, Q. (2013). The role of tourism and exchange rate on economic growth: Evidence from BIMP- EAGA countries. Economic Bulletin, 2013, 33(Issue 4), 2756–2762. https://doi.org/10.1017/CBO9781107415324.004
  16. Hazari, B.R. & Sgro, P.M. (1995). Tourism and Growth in a Dynamic Model of Trade. The Journal of International Trade and Economic Development. 2(4), 253-256.
  17. Insukindro. (1999). Pemilihan Model Ekonomi Empirik dengan Pendekatan Koreksi Kesalahan. Jurnal Ekonomi dan Bisnis Indonesia, 14(1).
  18. Kementerian Pariwisata Republik Indonesia. (2016). Ranking Devisa Pariwisata Terhadap Komoditas Ekspor Lainnya tahun 2011-2015. Jakarta: Penerbit Kementerian Pariwisata Republik Indonesia (Kemenpar RI). (Accessed, Desember 27, 2016).
  19. Leitao N.C., & Shahbaz, M. ( 2016 ). Economic Growth, Tourism Arrivals and Climate Change. Bulletin of Energy Economics, 4(1), 35-43. http://www.tesdo.org/Journal Detail.aspx?Id=4 Economic
  20. Lewis, M. Paul., Gary F. Simons., and Charles D. Fennig. (2015). Ethnologue: Languages of the World, Eighteenth edition. Dallas, Texas: SIL International. Online: www.ethnologue.com. (Accessed, January 13, 2015).
  21. Lee, C. and C. Chang (2008) Tourism development and economic growth: A closer look at panels. Tourism Management, 29, 180–192.
  22. Li, C. C., Mahmood, R., Abdullah, H., & Chuan, O. S. (2013). Economic Growth, Tourism and selected Macroeconomic variables: a Triangular Causal Relationship in Malaysia. The Journal of Applied Economic Research, 7(2), 185–206. https://doi.org/10.1177/0973 801013483503
  23. Lozano, J., Gómez, C., Rey-maquieira, J. (2005). An Analysis of the Evolution of Tourism Destinations from the Point of View of the Economic Growth Theory, Social Science Research Network Electronic Paper Collection, (146), 1-23. http://ssrn.com/abstract= 861885
  24. Makochekanwa, A. (2013). An analysis of tourism contribution to economic growth in SADC Countries. Botswana Journal of Economics, 11(15), 42–56.
  25. Mallick, L., Mallesh, U., & Behera, J. (2016). Does tourism affect economic growth in Indian states? Evidence from panel ARDL model. Theoretical and Applied Economics, 23(1), 183–194. Retrieved from http://store.ectap.ro/articole/1170.pdf
  26. Myers, R. H. (1990). Classical and Modern Regression with Applications. PWS-Kent Publishing Company.
  27. Nizar, M.A. (2011). Tourism Effect on Economic Growth in Indonesia. MPRA Paper, (65628), Posted July 21, 2015. (Accessed, January 13, 2015).
  28. Oh, C. O. (2005). The contribution of tourism development to economic growth in the Korean economy. Tourism Management, 26(1), 39–44. https://doi.org/10.1016/ j.tourman.2003.09.014
  29. Phiri, A. (2016). Tourism and Economic growth in South Africa: Evidence from linear and nonlinear cointegration frameworks. Managing Global Transitions: International Research Journal, 14(1), 31–53.
  30. Pina, I. P. A., & Martínez-García, M. P. (2013). An Endogenous Growth Model of International Tourism. Tourism Economics, 19(3), 509–529. https://doi.org/10.5367/ te.2013.0212
  31. Proenca, S., & Soukiazis, E. (2008). Tourism as an Economic Growth Factor: a Case Study for Southern European Countries. Tourism Economics, 14(4), 791–806. https://doi.org/10.5367/000000008786440175
  32. Šimundić, B., & Kuliš, Z. (2016). Tourism and Economic Growth in Mediterranean Region: Dynamic Panel Data Approach. Acta Economica Et Turistica, 2(1), 65-84. https://doi.org/ 10.1515/ aet-2016-0005
  33. Spillane, J James. (1994). “Indonesia Tourism: Strategy Economics and Engineering of Culture.†(Pariwisata Indonesia: Siasat Ekonomi dan Rekayasa Kebudayaan). Yogyakarta: Kanisius Publisher, 1-128.
  34. *www.antaranews.com. (2011). Time for N. Maluku to become tourist destination. Antaranews. 8 Mei 2011. (Accessed, 27 Juni 2013).
No Related Submission Found