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Tourism and economic growth: a panel data analysis for Pacific Island countries

journal contribution
posted on 2010-03-01, 00:00 authored by Paresh Narayan, S Narayan, A Prasad, B Prasad
The contribution of tourism to the economic growth of Pacific Island countries (PICs) has achieved significance in the past decade. The shift in the economic policies of the PICs from the late 1980s has been decisively away from import substitution and agriculture to urban-based manufacturing and services sectors. Tourism is the main component of the services sector in the PICs. The contribution of tourism to economic growth in Fiji, Tonga, the Solomon Islands and Papua New Guinea is expected to grow. The authors use panel data for the four PICs to test the long-run relationship between real GDP and real tourism exports. They find support for panel cointegration and the results suggest that a 1% increase in tourism exports increases GDP by 0.72% in the long run and by 0.24% in the short run.

History

Journal

Tourism economics

Volume

16

Issue

1

Pagination

169 - 183

Publisher

I P Publishing

Location

London, England

ISSN

1354-8166

Language

eng

Publication classification

C1 Refereed article in a scholarly journal