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Exploring the effect of ICT and tourism on economic growth: a study of Israel

Kumar, R. and Stauvermann, P.J. and Kumar, Nikeel and Shahzad, S.J.H. (2018) Exploring the effect of ICT and tourism on economic growth: a study of Israel. Economic Change and Restructuring, NA . pp. 1-34. ISSN 1573-9414

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In this paper, we explore the impact of information and communications technology (ICT) and tourism on per worker output over the period 1960–2016 by using an augmented Solow (Quart J Econ 70(1): 65–94, 1956) framework estimated through the autoregressive distributed lag procedure for cointegration (Pesaran et al. in J Appl Econ 16(3):289–326, 2001). The results show that mobile cellular subscriptions (measure of ICT pervasiveness) and visitor arrivals as a percent of workers (measure of tourism) are cointegrated and positive, however, only ICT is statistically significant in the long-run. The long-run elasticity coefficient of ICT and tourism is 0.03 and 0.05, respectively. We note a unidirectional causality from ICT to output per worker, from tourism to output per worker, from capital per worker to tourism, and from ICT to tourism. From the results, we emphasize that focusing on technology advancement and tourism expansion will provide the necessary support for economic growth in the country.

Item Type: Journal Article
Subjects: H Social Sciences > HD Industries. Land use. Labor
T Technology > T Technology (General)
Divisions: Faculty of Business and Economics (FBE) > School of Economics
Depositing User: Ms Shalni Sanjana
Date Deposited: 19 Jul 2018 22:58
Last Modified: 25 Nov 2022 00:00

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