Testing tourism-led economic growth and economic-driven tourism growth hypotheses: The case of Georgia

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Aliyev K., Ahmadova N.

TOURISM, vol.68, no.1, pp.43-57, 2020 (ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 68 Issue: 1
  • Publication Date: 2020
  • Doi Number: 10.37741/t.68.1.4
  • Journal Name: TOURISM
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus, IBZ Online, International Bibliography of Social Sciences, CAB Abstracts, Central & Eastern European Academic Source (CEEAS), Hospitality & Tourism Complete, Hospitality & Tourism Index
  • Page Numbers: pp.43-57
  • Azerbaijan State University of Economics (UNEC) Affiliated: Yes

Abstract

This paper empirically investigates a causal relationship between tourism and economic growth in Georgia for 1997-2018 period by employing ARDLBT approach to cointegration. Results reject economic-driven tourism growth hypothesis for Georgia and reveal that impact of tourism development over economic growth is negative in the long-run, in contrary positive in the short-run. Obtained results suggest that there is a possibility to have a tourism resource curse in the long-term in Georgia. Georgian government should build a tourism strategy to avoid crowding out of human capital from industrial production and decrease the share of imports for the needs of tourism sector.