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Corresponding Author:
Antonios Adamopoulos, Hellenic Open University of Greece and University of Western Macedonia, Gravena, Greece

A System Equation Model for Tourism and Economic Growth

(pp. 311-334)
JEL classification: C22, O11
Keywords: Economic Growth, Tourism Growth, Spain


This paper aims at investigating the interrelation between economic growth and tourism in Spain, in the period 1995-2017, by making use of a system equation model. Two-stage least squares method is used in order to examine both the direct and indirect relations between tourism and economic growth taking into account the positive effect of investments on tourism. The empirical results indicates that tourism growth has a positive and direct effect on economic growth for Spain for the examined period 1995-2017. The empirical results of Monte Carlo simulation method indicated that the system equation model is very well simulated, since the simulated values are close to actual values of examined variables.




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Institute for International Economics
of the Genoa Chamber of Commerce

Istituto di Economia Internazionale
Camera di Commercio di Genova
Via Garibaldi, 4 (III piano) - 16124 Genova (Italy)