Empirical Analysis Of The Relationship Between Tourism And Economic Growth

After 20 years' development at full speed, China's tourism industry has gained predominant achievement and has become an important factor for economic growth. As the establishment of China's socialism market economy system, economic growth benefits more and more from the field of tourism consumption. As a comprehension industry, tourism industry reflects the phenomenon of economy, society and culture. As a result, people begin to pursue self-development Consumption is tourism's most direct and obvious feature. Because people often analyze the relation between tourism industry and economic growth through Input-Output Model and qualitative analysis, this paper makes a beneficial attempt with econometrics methods.Firstly, this paper analyzes the relationship between tourism industry and economic growth with Granger Causality Test. The result indicates that tourism industry and economic growth in China have Granger cause effect on each other. Tourism industry influences and promotes economic growth, and vice versa.Secondly, from the point of demand, this paper analyzes the influence of tourism industry on economic growth with Time-varying Parameter Model. This paper selects tourism expenditure as the index to reflect the scope of tourism industry. With the result that tourism industry accelerates economic growth, each percent in domestic tourism expenditure goes with 0.1965 percent in GDP. At the same time, this paper analyzes the influence of economic growth on tourism industry with Time-varying Parameter Model. Because there is lack of per capita GDP data, this paper uses personal disposable income index instead of it. The result indicates that added personal disposable income push tourism industry forward. Domestic tourism income elasticity slightly exceeds but close to 1, which indicates that tourism will not be a luxury item. More and more people will travel at home.Finally, as a comprehensive industry, tourism activities can promote thedevelopment of many industries. This paper analyzes the influence of tourismconsumption on the investment of transportation, hotel industry and catering trade,...