Does tourism effectively stimulate Malaysia's economic growth?
This study attempts to further verify the validity of the tourism-led growth hypothesis in Malaysia using a multivariate model derived from the Solow growth theory. It employs annual data from 1975 to 2011. We find that economic growth, tourism and other determinants are cointegrated. Specifically,...
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| Main Authors: | , |
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| Format: | Article |
| Published: |
Elsevier
2015
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| Online Access: | http://eprints.um.edu.my/11625/ |
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| Summary: | This study attempts to further verify the validity of the tourism-led growth hypothesis in Malaysia using a multivariate model derived from the Solow growth theory. It employs annual data from 1975 to 2011. We find that economic growth, tourism and other determinants are cointegrated. Specifically, tourism has a positive impact on Malaysia's economic growth both in the short-run and in the long-run. The Granger causality test indicates that tourism Granger-causes economic growth. All this provides the empirical support for the tourism-led growth hypothesis in Malaysia. In light of this, any policy initiative that promotes tourism could contribute to Malaysia's economic growth. (C) 2014 Elsevier Ltd. All rights reserved. |
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