The main goal of this paper is to investigate the causality between tourism development and economic growth in Iran. For this purpose, a Vector Auto-Regressive (VAR) model, Response Function and Granger Causality test during the 1961-2005 period are used. The variables used in this paper consist of: Gross Domestic Product (GDP) as an index for camputing the economic growth and number of tourists arrival to Iran as an index for tourism development. The results show that these variables have a significant effect on each other and the hypothesis of reinforcing economic growth by tourism development and vice-versa is strongly approved.
Parsa, H. (2009). Causality between Tourism Development and Economic Growth in Iran: A Cointegration Approach. The Journal of Economic Policy, 1(1), 1-17.
MLA
Hojjat Parsa. "Causality between Tourism Development and Economic Growth in Iran: A Cointegration Approach". The Journal of Economic Policy, 1, 1, 2009, 1-17.
HARVARD
Parsa, H. (2009). 'Causality between Tourism Development and Economic Growth in Iran: A Cointegration Approach', The Journal of Economic Policy, 1(1), pp. 1-17.
VANCOUVER
Parsa, H. Causality between Tourism Development and Economic Growth in Iran: A Cointegration Approach. The Journal of Economic Policy, 2009; 1(1): 1-17.
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