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

This study investigates the association between economic growth and the tourism in Sri Lanka using cointegration analysis for the period 1980 to 2019.The analysis was performed using Augmented Dickey-Fuller test, Philips-Perron test, Engle-Granger cointegration and Granger causality tests. The resul...

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Autores principales:	Kurukulasooriya Nisantha, Lelwala Erandathie
Formato:	article
Lenguaje:	AR EN
Publicado:	Ziane Achour University of Djelfa 2021
Materias:	tourism economic growth empirical evidence sri lanka Social Sciences H Commerce HF1-6182
Acceso en línea:	https://doaj.org/article/b1df6ef9d2ed46de94f3de809c407d52
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spelling	oai:doaj.org-article:b1df6ef9d2ed46de94f3de809c407d522021-12-02T13:33:25ZLong-Run Nexus of Tourism and Economic Growth in Sri Lanka: Empirical Evidence Using Cointegration Analysis2676-184X2710-885610.48100/merj.2021.148https://doaj.org/article/b1df6ef9d2ed46de94f3de809c407d522021-03-01T00:00:00Zhttps://mer-j.com/merj/index.php/merj/article/view/148https://doaj.org/toc/2676-184Xhttps://doaj.org/toc/2710-8856This study investigates the association between economic growth and the tourism in Sri Lanka using cointegration analysis for the period 1980 to 2019.The analysis was performed using Augmented Dickey-Fuller test, Philips-Perron test, Engle-Granger cointegration and Granger causality tests. The results revealed that a long-run equilibrium relationship among variable while there is a disequilibrium in short run. The estimated error correction term is theoretical acceptable and approximately 5 percent 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 the economic activities in the long run. Findings further emphasis that benefits of the economic development must be transferred to further development of the tourism to maintain a bilateral causality which is an important concept in this regard. It provides the rationale for further development of productive policy strategies to attract more tourists to the country and to upsurge visitor expenditures during their stay in Sri Lanka since Sri Lanka has significantly developed its accommodation capacities. Findings further reveals that tourism sector must be developed parallel to the economic development to boost the growth through tourism. Therefore, it is necessary that all sectors, the government, private bodies, and voluntary organizations should become active partners in this endeavor and policy implication need the focus of every aspect of enhancing tourism as growth engine.Kurukulasooriya NisanthaLelwala ErandathieZiane Achour University of Djelfaarticletourismeconomic growthempirical evidencesri lankaSocial SciencesHCommerceHF1-6182ARENمجلة بحوث الإدارة والاقتصاد, Vol 3, Iss 1, Pp 25-43 (2021)
institution	DOAJ
collection	DOAJ
language	AR EN
topic	tourism economic growth empirical evidence sri lanka Social Sciences H Commerce HF1-6182
spellingShingle	tourism economic growth empirical evidence sri lanka Social Sciences H Commerce HF1-6182 Kurukulasooriya Nisantha Lelwala Erandathie Long-Run Nexus of Tourism and Economic Growth in Sri Lanka: Empirical Evidence Using Cointegration Analysis
description	This study investigates the association between economic growth and the tourism in Sri Lanka using cointegration analysis for the period 1980 to 2019.The analysis was performed using Augmented Dickey-Fuller test, Philips-Perron test, Engle-Granger cointegration and Granger causality tests. The results revealed that a long-run equilibrium relationship among variable while there is a disequilibrium in short run. The estimated error correction term is theoretical acceptable and approximately 5 percent 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 the economic activities in the long run. Findings further emphasis that benefits of the economic development must be transferred to further development of the tourism to maintain a bilateral causality which is an important concept in this regard. It provides the rationale for further development of productive policy strategies to attract more tourists to the country and to upsurge visitor expenditures during their stay in Sri Lanka since Sri Lanka has significantly developed its accommodation capacities. Findings further reveals that tourism sector must be developed parallel to the economic development to boost the growth through tourism. Therefore, it is necessary that all sectors, the government, private bodies, and voluntary organizations should become active partners in this endeavor and policy implication need the focus of every aspect of enhancing tourism as growth engine.
format	article
author	Kurukulasooriya Nisantha Lelwala Erandathie
author_facet	Kurukulasooriya Nisantha Lelwala Erandathie
author_sort	Kurukulasooriya Nisantha
title	Long-Run Nexus of Tourism and Economic Growth in Sri Lanka: Empirical Evidence Using Cointegration Analysis
title_short	Long-Run Nexus of Tourism and Economic Growth in Sri Lanka: Empirical Evidence Using Cointegration Analysis
title_full	Long-Run Nexus of Tourism and Economic Growth in Sri Lanka: Empirical Evidence Using Cointegration Analysis
title_fullStr	Long-Run Nexus of Tourism and Economic Growth in Sri Lanka: Empirical Evidence Using Cointegration Analysis
title_full_unstemmed	Long-Run Nexus of Tourism and Economic Growth in Sri Lanka: Empirical Evidence Using Cointegration Analysis
title_sort	long-run nexus of tourism and economic growth in sri lanka: empirical evidence using cointegration analysis
publisher	Ziane Achour University of Djelfa
publishDate	2021
url	https://doaj.org/article/b1df6ef9d2ed46de94f3de809c407d52
work_keys_str_mv	AT kurukulasooriyanisantha longrunnexusoftourismandeconomicgrowthinsrilankaempiricalevidenceusingcointegrationanalysis AT lelwalaerandathie longrunnexusoftourismandeconomicgrowthinsrilankaempiricalevidenceusingcointegrationanalysis
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Long-Run Nexus of Tourism and Economic Growth in Sri Lanka: Empirical Evidence Using Cointegration Analysis

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