Elvina PRIMAYESA
Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia, Faculty of Economics, Andalas University, Padang, Indonesia
yesa040486@gmail.com
Wahyu WIDODO
Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia
wahyuwid2002@live.undip.ac.id
F.X. SUGIYANTO
Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia
fxsugiyanto09@gmail.com
Abstract
The positive impact of tourism on economic growth is generally influenced by various indicators at both global and national levels. However, the question remains whether tourism encourages economic growth or vice versa. This paper examines the importance of tourism as a conditioning factor for economic growth in Indonesia. The validity of the relationship between tourism and economic growth can be examined by using the dynamic panel data estimation approach and convergence analysis to provide evidence of the impact of tourism on economic growth in Indonesia. In accordance with the initial hypothesis on tourism and economic growth, the result shows that the former can encourage the latter, although there is no indication of convergence among provinces in Indonesia. Therefore, if the supply characteristics of the tourism sector are improved, then it can be considered as an alternative source for stimulating economic growth in Indonesia.
Keywords: Economic Growth, Tourism, Dynamic Panel Data, Convergence
JEL classification: C23, L83, O40, O53
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