Tourism and economic growth. An empirical research for Argentina

Abstract

Tourism is assumed to provide an impetus to the economic progress of developing countries and its importance, during the last decades, has gained widespread recognition. In this way, some developing countries have decided to include tourism as one of their main exportable and economic sector. This study investigates if it exist a causal relationship between tourism and economic growth in Argentina by using a Granger causality test. After finding a two-way relationship between tourism to economic growth, the impulse-response function is also tested, showing that the maximum effect on economic growth caused by a shock in tourism is attained in the immediate following period and last for a maximum of three periods.