Original scientific paper

https://doi.org/10.37741/t.68.1.4

Testing tourism-led economic growth and economic-driven tourism growth hypotheses: The case of Georgia

Khatai Aliyev orcid.org/0000-0001-8161-6269 ; UNEC Empirical Researches Center, Azerbaijan State University of Economics (UNEC); Department of World Economy, Baku Engineering University, Baku, Azerbaijan
Nargiz Ahmadova ; Central Bank of the Republic of Azerbaijan, Monetary Policy Department, Financial Programming Division, Baku, Azerbaijan

Abstract

This paper empirically investigates a causal relationship between tourism and economic growth in Georgia for 1997-2018 period by employing ARDLBT approach to cointegration. Results reject economic-driven tourism growth hypothesis for Georgia and reveal that impact of tourism development over economic growth is negative in the long-run, in contrary positive in the short-run. Obtained results suggest that there is a possibility to have a tourism resource curse in the long-term in Georgia. Georgian government should build a tourism strategy to avoid crowding out of human capital from industrial production and decrease the share of imports for the needs of tourism sector.

Keywords

tourism-led growth; economic-driven tourism; tourism resource curse; crowding out; Georgia

Hrčak ID:

236228

URI

https://hrcak.srce.hr/236228

Publication date:

27.3.2020.

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