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. 2022 Sep 12;17(9):e0274386.
doi: 10.1371/journal.pone.0274386. eCollection 2022.

Tourism and economic growth: A global study on Granger causality and wavelet coherence

Chathuni Wijesekara  1 , Chamath Tittagalla  1 , Ashinsana Jayathilaka  1 , Uvinya Ilukpotha  1 , Ruwan Jayathilaka  2 , Punmadara Jayasinghe  1
Affiliations

Tourism and economic growth: A global study on Granger causality and wavelet coherence

Chathuni Wijesekara et al. PLoS One. .

Abstract

This paper empirically investigates the relationship between tourism and economic growth by using a panel data cointegration test, Granger causality test and Wavelet coherence analysis at the global level. This analysis examines 105 nations utilising panel data from 2003 to 2020. The findings indicates that in most regions, tourism contributes significantly to economic growth and vice versa. Developing trade across most of the regions appears to be a major influencer in the study, as a bidirectional association exists between trade openness and economic growth. Additionally, all regions other than the American region showed a one-way association between gross capital formation and economic growth. Therefore, it is crucial to highlight that using initiatives to increase demand would advance tourism while also boosting the economy.

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Conflict of interest statement

The authors have declared that no competing interests exist.

Figures

Fig 1
Fig 1. Conceptual framework.
Source: Authors’ illustrations.
Fig 2
Fig 2. Region-wise means of per capita GDP and tourism receipts, 2003–2020.
Note: The data points were converted as natural logarithms. Source: Authors’ illustration based on data from the world bank, UNWTO, and WorldData.info.
Fig 3
Fig 3. Recursive CUSUM plot for stability test.
Source: Authors’ illustration using R-Software.
Fig 4
Fig 4. Wavelet coherence between PGDP and TOUR.
Source: Authors’ compilation using R-Software.
See this image and copyright information in PMC

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