Long-Run Nexus of Tourism and Economic Growth in Sri Lanka: Empirical Evidence Using Cointegration Analysis

Author:

Nisantha Kurukulasooriya,Erandathie Lelwala

Abstract

This study investigates the association between economic growth and tourism in Sri Lanka using cointegration analysis for the period 1980 to 2019. The analysis was performed using the Augmented Dickey-Fuller test, Philips-Perron test, Engle-Granger cointegration, and Granger causality tests. The results revealed that a long-run equilibrium relationship among variables while there is a disequilibrium in the short run. The estimated error correction term is theoretically acceptable and approximately 5 per cent yearly correction of its disequilibrium in the short run was found. Granger causality test presented a long-run unidirectional causality which is running from tourism to economic growth and thus findings confirm the tourism-led growth hypothesis in Sri Lanka tourism and development spectrum. Therefore, tourism has a significant positive impact on economic activities in the long run. Findings further emphasize that benefits of the economic development must be transferred to the further development of tourism to maintain a bilateral causality which is an important concept in this regard. It provides the rationale for the further development of productive policy strategies to attract more tourists to the country and upsurge visitor expenditures during their stay in Sri Lanka since Sri Lanka has significantly developed its accommodation capacities. Findings further reveal that the tourism sector must be developed parallel to the economic development to boost the growth through tourism. Therefore, all sectors, the government, private bodies, and voluntary organizations must become active partners in this endeavour, and policy implications need the focus of every aspect of enhancing tourism as a growth engine.

Publisher

Management & Economics Research Journal, Ziane Achour University of Djelfa

Subject

General Medicine

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3