Computational Methods in Social Sciences (Jun 2015)
The relationship between tourism and economic growth in greece economy: a time series analysis
Abstract
In this study it’s analyzed how and in what way the expenditures of foreign visitors who came to Greece between 1980 and 2013 affected economic growth for Greece. For this purpose Granger Causality Test was used, the results of unit root tests such as Augmented Dickey Fuller (ADF) and the Philips Perron (PP) were tested and because it’s a time series analysis, unit root and co-integraion tests were applied. At this point lag coefficient was obtained using by Akaike Information Criteria (AIC). Using five different criteria, it was confirmed that the best suited lag period is 2. GDP and tourism data were obtained from the World Bank Statistical Data. The result showed that there was a strong unidirectional causality from the expenditures of foreign tourists who visited Greece to the growth of Greece at 1 % level of significance.
