Has the tourism-led growth hypothesis been validated? A literature review

TitleHas the tourism-led growth hypothesis been validated? A literature review
Publication TypeJournal Article
Year of Publication2016
AuthorsJG. Brida, I. Cortes-Jimenez, M. Pulina
JournalCurrent Issues in Tourism

Over 10 years have passed since the first paper on the tourism-led growth hypothesis (TLGH) was published in 2002. Since then, a wave of studies has appeared trying to understand the temporal relationship between tourism and economic growth. Hence, it is possible to provide an assessment in terms of econometric methods used and main empirical findings achieved so far. This paper presents an exhaustive review of approximately 100 peer-reviewed published papers on the TLGH. An overview on the economic theoretical framework behind the TLGH is also provided. Notably, the results present an increasing diversification in the econometric modelling used. With a few exceptions, the empirical findings suggest that overall international tourism drives economic growth.

Keywordscomprehensive review, economic growth, granger causality, tourism-led growth hypothesis