Causal Nexus Between International Tourism and Economic Development

What are the influences of international tourism receipts on economic development? How are international tourism receipts related to economic development? In this book, we stress that previous studies have focused on one or few regions. In this work, we employ a bootstrap panel Granger causality test to examine the causal relationship between international tourism receipts and economic growth in China's 31 major regions for the period from 1995 to 2015, accounting for both dependency and heterogeneity across regions. The results support evidence for the growth hypothesis in the regions, such as Anhui, Henan, Jiangxi, Jilin, Fujian, Jiangsu, Shandong, Tianjin, Chognqing, Inner Mongolia, Qinghai, Tibet and Yunnan. A reverse relationship supports evidence on the conservation hypothesis for the regions, such as Hubei and Hunan. A reciprocal causal relationship was found in Hebei and Shannxi, while the result of a neutrality hypothesis supported 14 of these 31 major regions. The empirical findings of this study provide important policy implications for China's 31 major regions.