Stauvermann, Peter J., Kumar, Ronald Ravinesh 
ORCID: 0000-0001-9658-4896, Shahzad, Syed Jawad Hussain and Kumar, Nikeel
(2016)
Effect of tourism on economic growth of Sri Lanka: accounting for capital per worker, exchange rate and structural breaks.
Economic Change and Restructuring, 51 (1).
pp. 49-68.
ISSN 1573-9414
Abstract
We explore the nexus between tourism, exchange rate and economic growth in Sri Lanka over the period 1980–2014. Using the augmented Solow (Q J Econ 70(1):65–94, 1956) framework and the ARDL bounds procedure whilst accounting for structural breaks using Bai and Perron (J Appl Econ 18(1):1–22, 2003) multiple break tests, the short-run and long-run association and impacts are examined. The results confirm the presence of a long-run association between tourism receipts (% of GDP), exchange rate, capital per worker and output per worker. The regression results show a 1% increase in tourism receipts results in a 0.03 and 0.06% increase in output per worker in the short-run and long-run, respectively. A unidirectional causality is noted from tourism to output per worker; from exchange rate to output per worker and capital per worker; and from output to capital, in per worker terms. Finally, we note that although structural breaks periods have negative association with economic growth, they are not statistically significant.
| Item Type: | Article |
|---|---|
| Additional Information: | Full text this article is not available in this repository. |
| Uncontrolled Keywords: | tourism; economic growth; elasticity; cointegration; casuality; structural breaks; Sri Lanka |
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | Institute of Management > Bolton Business School |
| Depositing User: | Sarah Taylor |
| Date Deposited: | 20 Dec 2016 11:25 |
| Last Modified: | 25 May 2018 13:58 |
| Identification Number: | 10.1007/s10644-016-9198-6 |
| URI: | http://ubir.bolton.ac.uk/id/eprint/1030 |
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