Abstract

This paper employs a quantile regression approach to test the effects of tourism growth on economic growth at the different conditional economic growth distribution from 1965 to 2005 in Taiwan. The key finding of this study is that tourism growth has a positive effect on economic growth at the top end of distribution (0.3 to 0.9 quantiles) of economic growth in Taiwan. However, tourism growth has no significant effect on economic growth at the low end of distribution (0.1 to 0.2 quantiles) of economic growth. The contribution of this study lies in providing empirical evidence to demonstrate that whether tourism growth will affect economic growth depends on the conditional distribution of economic growth.

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The effect of tourism growth on economic growth: A quantile regression analysis

This paper employs a quantile regression approach to test the effects of tourism growth on economic growth at the different conditional economic growth distribution from 1965 to 2005 in Taiwan. The key finding of this study is that tourism growth has a positive effect on economic growth at the top end of distribution (0.3 to 0.9 quantiles) of economic growth in Taiwan. However, tourism growth has no significant effect on economic growth at the low end of distribution (0.1 to 0.2 quantiles) of economic growth. The contribution of this study lies in providing empirical evidence to demonstrate that whether tourism growth will affect economic growth depends on the conditional distribution of economic growth.