Volume 21, No. 1, 2024
Examining The Tourism-Led Growth Hypothesis In GCC Countries
Reem A.Alqahtani
Abstract
This study has utilized panel data that covers the period from 2001 to 2020 for the Gulf Co-operation Council (GCC) nations. The study utilized a three-stage panel Granger analysis with a random effect model. This included a panel unit root test, panel cointegration analysis, and panel Granger causality test. The study analyzed the correlation between tourism enhancement and economic development in GCC nations. Based on the Random Effects Model, spending per tourist is an indicator of tourism development. This has a positive and significant effect on the Gross Domestic Product (GDP) per person, which measures the economic growth of GCC countries. During this period, the Granger non-causality test results showed a one-way causality from tourism development to the GDP per person of GCC countries. The hypothesis of tourism-led growth was supported.
Pages: 127-138
Keywords: GCC, Tourism-Led Growth Hypothesis, Tourism development, Economic development.