Tourism and growth: Empirical evidence from the European Union
Tourism and growth: Empirical evidence from the European Union

Summary/Abstract: The goal of this research is to estimate the effects of domestic and foreign tourist arrivals on economic growth in the European Union (EU). An autoregression with distributed lags (ARDL) is applied on annual data for the twenty-seven member states of the Union (EU-27) over the period 2014 – 2023. The results from the empirical analysis indicate that in the long term, a rise in income inequality, domestic tourist arrivals and foreign tourist arrivals will result in an accelerated economic growth but in the short run, only an increase in domestic tourism arrivals will encourage economic growth in the EU.

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