On the empirical link between tourism, economic growth and energy consumption: the case of Uruguay

ABSTRACT

Over the past two decades, the relationship between tourism and economic growth has taken significant interest in both academic and policy-making fields, particularly in developing countries such as Uruguay. This study employs an advanced approach based on time series analysis to explore the complex interactions between tourism, energy consumption, and economic growth, with a particular focus on the context of Uruguay. Utilizing quarterly data from 1997 to 2020, we apply the Vector Error Correction Model (VECM), to identify and analyze the shortandlong-term relationships among these variables. Through this analysis, we aim to provide a deep understanding of how tourism influences economic growth and energy consumption, emphasizing the importance of developing public policies that promote sustainable tourism balancing economic growth with environmental conservation.

KEYWORDS:

• Tourism
• economic growth
• energy consumption
• VECM
• Uruguay

JEL CODES:

• C32
• O13
• O47
• Z32

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

The authors appreciate the funding provided by the Comisión Sectorial de Investigación Científica (CSIC) Project: ‘Economic Dynamics’ for the execution of this document.