Long-Run and Short-Run Causality between Tourism sector and Economic growth: Evidence of VECM Analysis from COMESA countries

Abstract

The aim of this paper is to analyze the causal relationship between Tourism sector and GDP growth in eight (8) COMESA countries during the period 2003 to 2017. By performing a vector error-correction model (VECM), our results reveal that no long-run and no short-run causality between the Tourism sector and Economic growth. which is not normal that the tourism sector has no impact on economic growth. this should remind the government, the decision makers to look at what is the problem in tourism sector. This sector should play an important role in boosting a nation's economy.

Keywords: Vector error correction, Wald Test, COMESA countries, Tourism sector, Economic growth

DOI: 10.7176/JESD/11-8-13

Publication date: April 30^th 2020