Original scientific paper
https://doi.org/10.37741/t.72.4.1
Assessing the Tourism-Led Inflation Hypothesis: An Empirical Framework
Ivan Kožić
orcid.org/0000-0002-3203-6513
; Institute for Tourism, Zagreb, Croatia
*
Petar Sorić
orcid.org/0000-0002-6773-264X
; University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia
Ivan Sever
orcid.org/0000-0002-7043-4862
; Institute for Tourism, Zagreb, Croatia
* Corresponding author.
Abstract
The tourism-led economic growth hypothesis is one of the most investigated concepts in tourism economics literature. It has been verified by many empirical studies so far. Since the concept of growth-driven inflation belongs to the fundamentals of macroeconomic theory, one could reasonably assume that inflation can also be led by tourism development. The question, however, is through what mechanisms could it be adequately identified and assessed. If anywhere, tourism-led inflation could first and foremost be perceived in a country with a significant economic impact of tourism. We take one of such countries as a case study and use the structural vector autoregression methodology to examine tourism-led inflation. The presented empirical framework may also serve as a role model applicable to other countries and regions.
Keywords
inflation; tourism; TLGH; SVAR
Hrčak ID:
319806
URI
Publication date:
26.7.2024.
Visits: 254 *