publication . Article . Preprint . 2015

International Tourism and Economic Growth in New Zealand

Mohammad Jaforullah;
Open Access
  • Published: 01 Apr 2015 Journal: Tourism Analysis, volume 20, pages 413-418 (issn: 1083-5423, eissn: 1943-3999, Copyright policy)
  • Publisher: Cognizant, LLC
This paper examines whether the tourism-led growth hypothesis holds for the New Zealand economy. Using unit root tests, cointegration tests and vector error correction models, and annual data over the period 1972-2012 on international tourism expenditure, real gross domestic product (GDP) and the exchange rate for New Zealand, it finds that the tourism-led growth hypothesis holds for New Zealand. The long-run elasticity of real GDP with respect to international tourism expenditure is estimated to be 0.4, meaning that a 1% growth in tourism will result in a 0.4% growth of the NZ economy. This finding implies that the New Zealand Government’s policy to promote N...
free text keywords: Tourism; Economic growth; Cointegration; Granger causality; Vector error correction model; New Zealand, Tourism, Leisure and Hospitality Management, jel:C32, jel:F14, jel:L83

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