Is the tourism-led growth hypothesis valid for malaysia? a view from disaggregated tourism markets

• DOI: 10.1002/jtr.807
• Publication Date: 2010-10-08T06:50:27Z
• Authors: Chor Foon Tang
• Keywords: Identification; Causality

This research note attempts to re-investigate the validity of tourism-led growth hypothesis for Malaysia based on data set 12 different tourism markets from January 1995 February 2009. The error-correction modelling-based cointegration test shows that economic and international tourist arrivals are cointegrated all markets. Nevertheless, Granger causality results demonstrate not Granger-cause growth. Therefore, identification potential is vital implementing effective marketing policies. Copyright © 2010 John Wiley & Sons, Ltd.