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Original Articles

The relationships among tourism development, energy demand, and growth factors in developed and developing countries

Pages 122-131 | Received 08 Jul 2015, Accepted 02 Sep 2015, Published online: 04 Nov 2015
 

Abstract

The objective of the study is to explore the different factors that affect tourism development in the panel of 34 developed and developing countries, over the period of 2005–2013. Energy consumption, air pollution, health expenditures, and economic growth played a vital role to change tourism development indicators in the region. The results confirmed the long-run association between the energy, environment, growth, and tourism indicators in the panel of selected 34 countries. The results of fully modified ordinary least squares (FMOLS) indicate that health expenditures have a positive relationship with the tourism indicators, while energy consumption exerts a negative association with the tourism indicators in the region. The results of dynamic ordinary least squares regression also confirmed the same results of FMOLS regarding health expenditures and energy consumption, that is, positive and negative impacts on the tourism indicators. However, carbon dioxide emissions exert a positive relationship with the tourism indicators in the region.

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