European Academic Research ISSN 2286-4822
ISSN-L 2286-4822
Impact Factor: 3.4546 (UIF)
DRJI Value : 5.9 (B+)
Article Details :
Article Name :
Tourism, Financial Development and Economic Growth: A Causal analysis for the Balkans
Author Name :
Zhaklina Dhamo
Publisher :
Bridge Center
Article URL :
Abstract :
Tourism accounts for approximately 8% of the world GDP in 2022. This research provides a causal analysis for the intersection between economic growth, financial development, and tourism receipts in the Balkans. Following the findings of Dhamo (2023), the study uses panel data in the time range 2000-2020 from Albania, North Macedonia, Montenegro, Serbia, Bosnia & Herzegovina. The data source is World Development Indicators from World Bank Group. We follow in part the methodology of Rasool et al. (2021). The research implements Johansen Cointegration tests to statistically test the long-term relationship between tourism, financial development, and economic growth. In the research, it is implemented the Granger Causality test for identifying causal relationships between the three variables. The results of the research identify a significant long-term relationship among financial development, economic growth, and tourism receipts. Moreover, based on Granger causality analysis, the study concludes that the causality between inbound tourism and economic growth is one directional, the same conclusion applies to the relationship between inbound tourism and financial development.
Keywords :
tourism-led growth hypothesis, long-term cointegration, financial development, Granger Causality analysis, Economic Growth, Financial Development

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