The link between tourism activities and economic growth: Evidence from China’s provinces

Abstract

This study explores the causal relationship between international tourism receipts and economic growth in China’s eight central provinces (Shanxi, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei and Hunan) by analyzing these provinces for the period from 1995 to 2014, accounting for both dependency and heterogeneity across provinces. The empirical results of this study support evidence for the growth hypothesis in Hunan Province. A reverse relationship supports evidence on the conservation hypothesis for the provinces, such as Shanxi, Jiangxi, and Henan. A reciprocal causal relationship was found for Jilin, Anhui, and Hubei, while the result of a neutrality hypothesis supported only one of the provinces in Heilongjiang. The empirical findings of this study provide important policy implications for China’s eight central provinces.