Skip to main content
SpringerLink
Log in

The Relationship Between Tourism Industry and Economic Growth: A Panel Data Analysis for ASEAN Member Countries

  • Chapter
  • First Online:
Quantitative Tourism Research in Asia

Part of the book series: Perspectives on Asian Tourism ((PAT))

Abstract

The Association of Southeast Asian Nations (ASEAN) is one of the best performing regions in the world in terms of economic growth. Tourism industry is one of the sources for ASEAN region to realize higher economic growth. Tourism is a significant driver of economic growth and a potential strategic industry for economic growth in all of ASEAN member countries. In other words, tourism is a key economic sector that has implications for societies and cultures in this region.

In this chapter the relationship between tourism industry and economic growth in ASEAN countries is studied. Tourism receipts, export revenues, and foreign direct investment are the variables that were analyzed to determine how effective they are on the GDP of the ASEAN member countries. For that panel data analysis is used. Panel data is the most available method to study on common characteristics of country groups as it was in this case. Logarithmic values of the variables are included in to the analysis. First of all, stationarity of the variables was tested with Levin, Lin, and Chu; Im, Pesaran, and Shin W-stat; ADF-Fisher Chi-square, PP-Fisher Chi-square, and all variables are eliminated from unit root. After that panel data analysis was performed via EViews 8 statistical program. There are some studies used the method in tourism.

The results of the analysis show that there are statistically significant relations between GDP, export, and tourism. But the effect of the foreign direct investment on the GDP is not significant as it was seen in many empirical studies before. The coefficient of the export and the tourism are low maybe because of the economic diversity of the ASEAN countries. This means that the region is available for tourism investments and has potential to invite more tourists. The coefficient of the export and the tourism is low maybe because of the economic diversity of the ASEAN countries as well as the lack of enough investment and the lack effective tourism policies. For example, Singapore is export-oriented country, and the rate of the export on the GDP is so high, and Cambodia is tourism oriented, whereas Myanmar has no effective policies to invigorate the tourism and the export.

Highlights:

  • First contribution analyzing ASEAN tourism receipts and its effect on the GDP.

  • Panel data model which is the most available method to study on common characteristics of country groups.

  • External demand to the economies of ASEAN countries as goods, services, and local assets.

  • Tourism receipts and the export revenues seem effective on the GDP.

  • Some of ASEAN countries are export oriented, while the others are tourism oriented.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 149.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 199.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • ADB (Asian Development Bank). (2017). Tourism sector assessment, strategy, and road map for Cambodia, Lao People’s Democratic Republic, Myanmar, and Viet Nam (2016–2018). Philippines: Economics and Research Department, Asian Development Bank.

    Book  Google Scholar 

  • ASEAN. (2002). ASEAN tourism agreement. Jakarta: The Association of Southeast Asian Nations.

    Google Scholar 

  • ASEAN. (2015a). ASEAN economic community blueprint 2025. Jakarta: The Association of Southeast Asian Nations.

    Google Scholar 

  • ASEAN. (2015b). ASEAN tourism strategic plan 2016–2025. Jakarta: The Association of Southeast Asian Nations.

    Google Scholar 

  • Aslan, A. (2014). Tourism development and economic growth in the Mediterranean countries: Evidence from panel granger causality tests. Current Issues in Tourism, 17(4), 363–372.

    Article  Google Scholar 

  • Athanasopoulou, A. (2013). Tourism as a driver of economic growth and development in the EU-27 and ASEAN regions. Singapore: EU Center.

    Google Scholar 

  • Baltagi, B. (2008). Econometric analysis of panel data. Chichester: Wiley.

    Google Scholar 

  • Blake, A., Arbache, J. S., Sinclair, M. T., & Teles, V. (2008). Tourism and poverty relief. Annals of Tourism Research, 35(1), 107–126.

    Article  Google Scholar 

  • Chok, S., Macbeth, J., & Warren, C. (2007). Tourism as a tool for poverty alleviation: A critical analysis of ‘pro-poor tourism’ and implications for sustainability. Current Issues in Tourism, 10(2–3), 144–165.

    Article  Google Scholar 

  • Chou, M. C. (2013). Does tourism development promote economic growth in transition countries? a panel data analysis. Economic Modelling, 33, 226–232.

    Article  Google Scholar 

  • Ekanayake, E. M., & Long, A. E. (2012). Tourism development and economic growth in developing countries. The International Journal of Business and Finance Research., 6(1), 51–63.

    Google Scholar 

  • Fayissa, B., Nsiah, C., & Tadasse, B. (2008). Impact of tourism on economic growth and development in Africa. Tourism Economics, 14(4), 807–818.

    Article  Google Scholar 

  • Godfrey, M., Sovannarith, S., Saravy, T., Dorina, P., Katz, C., Acharya, S., Chanto, S. D., & Thoraxy, H. (2001, August). A study of the Cambodian labour market: Reference to poverty reduction, growth and adjustment to crisis (Working paper 18). Phnom Penh: Cambodia development resource institute.

    Google Scholar 

  • Harrison, D. (2015). Development theory and tourism in developing countries: What has theory ever done for us? International Journal of Asia-Pacific Studies:IJAPS, 11(1), 53–82.

    Google Scholar 

  • Hausman, J. A. (1978). Specification tests in econometrics. Econometrica: Journal of the Econometric Society, 1, 1251–1271.

    Article  Google Scholar 

  • Herman, G. V., Deac, A. L., Ciobotaru, A. M., Andronache, I. C., Loghin, V., & Ilie, A. M.. (2017). The role of tourism in local economy development. Bihor County Case Study. Urbanism. Arhitectura. Constructii. 8(3):265.

    Google Scholar 

  • Holik, A. (2016). Relationship of economic growth with tourism sector. JEJAK: Jurnal Ekonomi dan Kebijakan, 9(1), 16–33. https://doi.org/10.15294/jejak.v9i1.7184.

    Article  Google Scholar 

  • Lean, H. H., Chong, S. H., & Chee-Wooi Hooy, C.-W. (2014). Tourism and economic growth: Comparing Malaysia and Singapore. International Journal of Economics and Management, 8(1), 139–157.

    Google Scholar 

  • Lickorish, L. J., & Jenkins, C. L. (2007). Introduction to tourism. London: Routledge.

    Book  Google Scholar 

  • Mazumder, M. N., Ahmed, E. M., & Al-Amin, A. Q. (2009). Does tourism contribute significantly to the Malaysian economy? Multiplier analysis using IO technique. International Journal of Business and Management., 4(7), 146–159.

    Article  Google Scholar 

  • Oh, C. O. (2005). The contribution of tourism development to economic growth in the Korean economy. Tourism Management, 26(1), 39–44.

    Article  Google Scholar 

  • Othman, R., & Salleh, N. H. M. (2008). Relationship between tourism industry development and economic growth in major ASEAN countries. International Journal of Management Studies, 17, 171–188.

    Google Scholar 

  • Pleumarom, A. (2012). The politics of tourism, poverty reduction and sustainable development. Penang: Third World Network (TWN).

    Google Scholar 

  • Scheyvens, R. (2015). Tourism and poverty reduction. In R. Sharpley & D. J. Telfer (Eds.), Tourism and development: Concepts and issues (pp. 118–139). Bristol/Toronto: Channel View Publications.

    Google Scholar 

  • Stock, J. H., & Watson, M. W. (2007). Introduction to econometrics. Boston: Pearson Addison Wesley.

    Google Scholar 

  • Thirumaran, K., & Arumynathan, P. (2016). Destination ASEAN, beyond 2015. In P. Mandal & J. Vong (Eds.), Development of tourism and the hospitality industry in Southeast Asia (pp. 1–12). Singapore: Springer. https://doi.org/10.1007/978-981-287-606-5.

    Chapter  Google Scholar 

  • Tiwari, A. (2011). Tourism, exports and FDI as a means of growth: Evidence from four Asian countries. The Romanian Economic Journal., 14(40), 131–151.

    Google Scholar 

  • UNCTAD (United Nations Conference on Trade and Development). (2010). Contribution of tourism to trade and development. Geneva: United Nations http://www.unctad.org/en/docs/cid8_en.pdf. Accessed 22 Sept 2017.

    Google Scholar 

  • UNWTO (World Tourism Organization). (2002). Tourism and poverty alleviation. Madrid: World Tourism Organization.

    Google Scholar 

  • UNWTO (World Tourism Organization). (2010). ASEAN integration and its impact on tourism. Madrid: World Tourism Organization.

    Google Scholar 

  • UNWTO (World Tourism Organization). (2017a). UNWTO tourism highlights. Madrid: World Tourism Organization.

    Google Scholar 

  • UNWTO (World Tourism Organization). (2017b, June 21–23). Measuring sustainable tourism: A call for action report of the 6th international conference on tourism statistics. Manila, Philippines.

    Google Scholar 

  • Wong, E. P., Mistilis, N., & Dwyer, L. (2011 Apr 30). A framework for analyzing intergovernmental collaboration–the case of ASEAN tourism. Tourism Management, 32(2), 367–376.

    Article  Google Scholar 

  • WTTC (World Travel and Tourism Council). (2016 October). Travel and tourism investment in ASEAN. London: WTTC.

    Google Scholar 

  • WTTC (World Travel and Tourism Council). (2017a). The economic impact of travel and tourism – world. London: WTTC.

    Google Scholar 

  • WTTC (World Travel and Tourism Council). (2017b). Travel and tourism economic impact 2017 – South East Asia. London: WTTC.

    Google Scholar 

  • Yonn, R. (2017). The effect of Cambodia economy on ASEAN economic moving forward. Journal of Management, Economics, and Industrial Organization, 1(2), 1–16.

    Article  Google Scholar 

  • Yousuf, A., & Lal, R. (2013). The impact of ASEAN on tourism. International Journal of Networking and Parallel Computing, 2(3), 38–44.

    Google Scholar 

Download references

Acknowledgment

The research was supported by Zaman University in Cambodia, Research Office via Exploratory Research Grant Scheme of Zaman University, Grant No: ERGS/5/2017/ZURO/09/17

Author information

Authors and Affiliations

  1. Burch University, Sarajevo, Bosnia and Herzegovina

    Mustafa Öztürk

  2. Zaman University, Phnom Penh, Cambodia

    Ali Ihtiyar & Osman Nuri Aras

Authors
  1. Mustafa Öztürk
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Ali Ihtiyar
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Osman Nuri Aras
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. University of Hamburg, Hamburg, Germany

    Sajad Rezaei

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Singapore Pte Ltd.

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Öztürk, M., Ihtiyar, A., Aras, O.N. (2019). The Relationship Between Tourism Industry and Economic Growth: A Panel Data Analysis for ASEAN Member Countries. In: Rezaei, S. (eds) Quantitative Tourism Research in Asia. Perspectives on Asian Tourism. Springer, Singapore. https://doi.org/10.1007/978-981-13-2463-5_3

Download citation

Publish with us

Policies and ethics

Search

Navigation