Does tourism effectively stimulate Malaysia's economic growth?
Document Type
Article
Publication Date
1-1-2015
Abstract
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.
Keywords
Causality, Cointegration, Economic growth, Malaysia, Tourism
Publication Title
Tourism Management
Volume
46
Publisher
Elsevier
Publisher Location
THE BOULEVARD, LANGFORD LANE, KIDLINGTON, OXFORD OX5 1GB, OXON, ENGLAND