The Impact of Tourism Industry on Economic Growth: The Case of Algeria (Cointegration & Causal Analysis)

Abstract

The objective of this research paper is to analyze the relationship between tourism and economic growth in Algeria during the period 1995-2018. To this end, an economic model was estimated according to the econometric methodology (cointegration relationship test and vector error correction model “VECM” in addition to the Granger causality test). The results showed that the number of tourists has a negative impact on economic growth in Algeria, which means that Algeria depends on other variables to increase economic growth, such as oil revenues.

Keywords

• Causality
• Cointegration
• Economic Growth
• Tourism
• Algeria