Tourism and Economic Growth in Jordan: Evidence from Linear and Nonlinear Frameworks

Buthaina M.A. Muhtaseb; Hussam-Eldin Daoud

Article Details

Tourism and Economic Growth in Jordan: Evidence from Linear and Nonlinear Frameworks

Authors:

Buthaina M.A. Muhtaseb | Hussam-Eldin Daoud

Publisher:

İlhan ÖZTÜRK

Journal:

International Journal of Economics and Financial Issues 2017 Vol.7 Issue 1, pp.214-223

Document Type:

Article

Publication Date:

2/2017

Document Language:

Turkish

Document ID (Org No.):

2000812043

Frequency:

Bimonthly

eISSN:

2146-4138

Abstract:

 

This study investigates cointegration and causal effects between tourism and economic growth in Jordan. We use quarterly data from 1998Q1 to 2015Q4 on real GDP and real international tourism receipts. Two empirical approaches are employed; Engle and Granger (1987) linear cointegration framework, and the nonlinear framework of Enders and Siklos (2001) cointegration test, in addition to Diks and Panchenko (2006) causality test. Empirical findings reveal the presence of a positive long-run relationship between tourism and economic growth. According to the linear approach there is a unidirectional causality from tourism to growth, thus, supporting the tourism-led growth hypothesis. Whereas, the nonlinear method, which seems to give more appropriate results, suggests a bidirectional causality, hence, confirming the feedback hypothesis that economic growth and tourism reinforce each other.

Article Details

Tourism and Economic Growth in Jordan: Evidence from Linear and Nonlinear Frameworks

Authors: Buthaina M.A. Muhtaseb | Hussam-Eldin Daoud

Publisher: İlhan ÖZTÜRK

Journal: International Journal of Economics and Financial Issues 2017 Vol.7 Issue 1, pp.214-223

Document Type: Article

Publication Date: 2/2017

Document Language: Turkish

Document ID (Org No.): 2000812043

Frequency: Bimonthly

eISSN: 2146-4138

Issues

Authors:

Buthaina M.A. Muhtaseb | Hussam-Eldin Daoud

Publisher:

İlhan ÖZTÜRK

Journal:

International Journal of Economics and Financial Issues 2017 Vol.7 Issue 1, pp.214-223

Document Type:

Article

Publication Date:

2/2017

Document Language:

Turkish

Document ID (Org No.):

2000812043

Frequency:

Bimonthly

eISSN:

2146-4138