The relationship between tourism and sustainable economic growth in the Republic of Benin

ABSTRACT

This paper examines the nexus between tourism revenue and economic growth to the Republic of Benin throughout for 1995–2015. Specifically, this document examines the dynamic link between the three variables within a vector error correction model using the Johansen technique of co-integration, as well as the CUSUM test. The result confirms the tourism-led growth hypothesis that tourism has had a positive impact on economic growth in the developing countries, particularly in the Republic of Benin. Similarly, the CUSUM test CUSUM and CUSUMSQ statistics are well within the 5% critical bounds, implying that short- and long-term coefficients in the ARDL-Error Correction Model are stable. The result suggests that governments in developing nations will promote and increase international tourism demand to attain sustainable economic growth and development.

KEYWORDS:

• Economic growth
• exchange rate
• tourism revenue
• co-integration
• the Republic of Benin

Data availability statement

The datasets used and analysed during the current study are available from the World Bank database 2018.