Does Tourism Boost Economic Growth: Evidence from Italy
Purpose: Tourism plays a crucial role in enhancing the nation's welfare. Therefore, this study's core idea is to investigate tourist arrival, tourism growth, tourism expenditure, and its associated economic headway impact. Approach/Methodology/Design: Using an annual time series data from 1995-2018, capturing the effect of tourism growth, tourism expenditure on economic growth, and finally revealing the association amongst these endogenous and exogenous parameters. Findings: The unit root test analysis outcomes illustrate that all parameters become stationary when a first-order difference is considered as having a lag value of one. ADRL Bound test reveals the presence of short-run association among parameters. The outcomes of t-statistics and the Wald F-test reveal bidirectional and unidirectional causation among the parameters. Practical Implications: The study will contribute positively to the understanding of tourism and its associated effect to boost the economy. Originality/Value: The study believes to contribute positively to the understanding of the tourism sector.