Stauvermann, P.J. and Kumar, Ronald R. and Shahzad, S.J.H. and Kumar, N.N. (2016) Effect of tourism on economic growth of Sri Lanka: accounting for capital per worker, exchange rate and structural breaks. Economic Change and Restructuring . pp. 1-20. ISSN 1573-9414
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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: | Journal Article |
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Additional Information: | Published online only |
Subjects: | H Social Sciences > HA Statistics H Social Sciences > HB Economic Theory H Social Sciences > HG Finance |
Divisions: | Faculty of Business and Economics (FBE) > School of Accounting and Finance |
Depositing User: | Ronald Kumar |
Date Deposited: | 27 Nov 2016 22:35 |
Last Modified: | 27 Nov 2016 22:35 |
URI: | https://repository.usp.ac.fj/id/eprint/9501 |
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