Tourism expansion and economic growth in Tanzania: a causality analysis

Kyara, Valensi Corbinian and Rahman, Mohammad Mafizur and Khanam, Rasheda ORCID: https://orcid.org/0000-0003-1130-2357 (2021) Tourism expansion and economic growth in Tanzania: a causality analysis. Heliyon, 7 (5). pp. 1-9.


Abstract

After the economic liberalization in mid-2000, Tanzania has assumed that tourism growth spars economic growth due to the consistent significant contribution of tourism sector to the country's annual income. However, there are limited empirical studies that investigated tourism-economic growth relationship in Tanzania. This study aims to investigate an empirical insight into the actual nature of tourism-economic growth in Tanzania by applying the Granger causality and Wald test methods where annual time series data on international tourism receipt, real Gross Domestic Product, and real effective exchange rate over the period 1989–2018 are used. Further, the Impulse Response Function approach is utilized to provide insight into the qualitative nature of the relationships and the length of time necessary for the causal effect to take place. The findings confirm a unidirectional causality from tourism development to economic growth. The study concludes that Tanzania ought to focus on economic strategies that encourage sustainable tourism development as a feasible source of economic growth.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to published version in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Date Deposited: 07 May 2021 04:54
Last Modified: 12 Jul 2021 05:12
Uncontrolled Keywords: causality; economic growth; impulse response function; Tanzania; tourism; tourism led growth
Fields of Research (2008): 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1402 Applied Economics > 140216 Tourism Economics
Fields of Research (2020): 38 ECONOMICS > 3802 Econometrics > 380205 Time-series analysis
38 ECONOMICS > 3801 Applied economics > 380116 Tourism economics
Socio-Economic Objectives (2008): B Economic Development > 90 Commercial Services and Tourism > 9003 Tourism > 900301 Economic Issues in Tourism
Identification Number or DOI: https://doi.org/10.1016/j.heliyon.2021.e06966
URI: http://eprints.usq.edu.au/id/eprint/41935

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