Tourism And Economic Growth In Africa A Panel Data Approach

Tourism is an imp0l1ant source of foreign exchange earnings, income and employment, which, canrncontribute to poverty alleviation of African countries. The purpose of this study is to investigate thernimpact of tourism sector on economic growth and the vise versa. To achieve this objective arndynamic panel estimated by the systems generalized method of moment's estimator and pooledrnordinary least squares are applied on forty two African countries for the period 1995-2005. Thisrnstudy will contribute to the limited empirical literature on the impact of tourism on economicrngrowth and the vise versa in the region.rnWe found a significant positive contribution of the tourism sector for economic growth of therncountries from the economic growth model. Similarly, the econometric results from the tourists'rnarrival model indicated that economic growth is vital for the development of the tourism sector.rnHence, African countries should create conducive environment (e.g. political stability) and commitrntheir resources to increase the contribution of the tourism industry to national income.rnKey words: Tourism, Economic growth, Panel dota, Africa.

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