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Tourism and Economic Growth: A Comparative Study for Two Emerging Countries
Department of Business and Management Administration, University of Western Macedonia, Grevena, Greece
Department of Education, Hellenic Open University, Patra, Greece
- 1 Department of Business and Management Administration, University of Western Macedonia, Grevena, Greece
- 2 Department of Education, Hellenic Open University, Patra, Greece
Theoretical Economics Letters·Volume 13 (2023)·Pages 228–241·Published 3 March 2023·DOI10.4236/tel.2023.132014
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Abstract
This paper aims at investigating the interrelation between economic and tourism growth, by making use of a system equation model for two most emerging countries China and Mexico covering the time period from 1995 to 2017. Seemingly unrelated regression estimation (SURE) method is selected for estimation of the structural system equation model. Finally, a Monte Carlo simulation method is applied for sensitivity analysis of the regression model. Tourism growth affects economic growth positively and statistical significa ntly in two emerging countries such as China and Mexico based on tourism-led growth theory.
KeywordsEconomic GrowthTourism GrowthSystem Equation ModelMonte Carlo SimulationSensitivity Analysis
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