Keywords
tourism, economic growth, poverty, cointegration, technique, causality
Abstract
This study, using cointegration and causality tests, investigates the relationship among tourism development, economic expansion, and poverty reduction in Nicaragua. The results indicate a long-run stable relationship among the three. The causality tests suggest a one-way Granger causal relation between tourism development and economic expansion, and between tourism and poverty reduction, and a bidirectional causal relation between economic expansion and poverty. The nexus of tourism, economic expansion, and poverty reduction is established in the Nicaraguan economy. This result is supported by testing the sensitivity of the Granger causality test under different lag selections along the optimal lag. The empirical evidence points to the potential economic muscle of tourism to seriously tackle Nicaraguan poverty at scale through helping both Nicaragua’s public and private sectors allocate resources to tourism development, resulting in the overall improvement of the economy.
Publication Date
1-25-2008
Original Citation
Croes, R. and Vanegas, Sr., M. (2013). Cointegration and Causality between Tourism and Poverty Reduction. Journal of Travel Research, 47(1), 94-103.
Number of Pages
94-103
Document Type
Paper
Language
English
Source Title
Journal of Travel Research
Volume
47
Issue
1
Copyright Status
Unknown
Copyright Date
2008
Publication Version
Post-print
College
Rosen College of Hospitality Management
Location
Rosen College of Hospitality Management
STARS Citation
Croes, Robertico R. and Vanegas, Manuel Sr., "Cointegration and Causality between Tourism and Poverty Reduction" (2008). Faculty Scholarship and Creative Works. 207.
https://stars.library.ucf.edu/ucfscholar/207