The Relationship Between International Tourism Activities and Economic Growth: Evidence from China’s Economy

ABSTRACT

This study explores the causal relationship between international tourism receipts and economic growth in China’s 11 eastern provinces, accounting for both dependency and heterogeneity across provinces. The empirical results support evidence for the growth hypothesis in the province such as Hebei. A reverse relationship supports evidence on the conservation hypothesis for the provinces, such as Liaoning, Zhejiang, Fujian, Shandong and Guangdong. A neutrality hypothesis supported 5 of these 11 major provinces (i.e. Beijing, Tianjin, Shanghai, Jiangsu and Hainan).

KEYWORDS:

• China’s eastern provinces
• dependency and heterogeneity
• economic growth
• international tourism receipts
• panel causality test

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. Here is the website for the data: http://www.stats.gov.cn/english/

2. Foreign exchange earnings from international tourism refer to the total expenditure on transportation, sighting, accommodation, food, shopping and entertainment of foreigners and overseas Chinese during their stay in China.