Economic Growth and Tourism in Barbados: A Test of the Supply-side Hypothesis

Jackman, Mahalia and Lorde, Troy (2009): Economic Growth and Tourism in Barbados: A Test of the Supply-side Hypothesis. Published in: Tourismos , Vol. 7, No. 2 (2012): pp. 203-215.

Abstract

The goal of this study is to examine the supply side hypothesis of tourism demand, that is, to answer the question: Does economic growth in Barbados spur tourism growth. Results suggest that there is a long-run relationship between real GDP in Barbados and tourist arrivals. Specifically, we find that a 1% expansion in real GDP is associated with a 1.2% increase in tourist arrivals. Further, our Granger causality test suggests that the supply-side hypothesis is valid for Barbados.

• Item Type: MPRA Paper
• Language: English
• Keywords: tourism, economic growth, Barbados
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports ; Gambling ; Restaurants ; Recreation ; Tourism; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O54 - Latin America ; Caribbean

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