Panel Causality of Regional Tourism Development and Economic Growth in China

다국어 초록 (Multilingual Abstract)

The purpose of this study is to investigate the causality of regional tourism contribution and regional economic growth in China and to suggest policies for governments in allocating the economic resources. This study examined the causal relationship between regional economic growth and regional tourism development in China by employing annual data of 28 provinces in China from 1978 to 2008. A three-step procedures is used: panel unit root tests of Levin, Lin, and Chu (2002) and Im, Pesaran, and Shin (2003), a panel residual cointegration test proposed by Pedroni (1999), and the Granger non-causality test for heterogeneous panel data developed by Dumitrescu and Hurlin (2012). The results of the empirical analyses indicate a unidirectional causality from regional economic growth to regional tourism development in China. Thus, the evidence from this study supports the regional growth-led tourism hypothesis in China, thereby suggesting that regional economic growth increases regional tourism development in China. The findings of this study lead to the suggestion that policymakers invest in regional tourism development to meet economic growth goals because regional economic growth in the Chinese Provinces can be a useful policy to boost regional tourism development.
Therefore, sustainable long-term regional economic growth can contribute to the potential of regional tourism development.

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