THE IMPACT OF TOURISM ON ECONOMIC GROWTH: THE CASE OF ALBANIA

Abstract

Purpose: Tourism plays a key role in the economic development of many countries, especially in developing nations, by generating jobs, attracting foreign exchange, and reducing trade deficits. This study examines the impact of tourism revenues on Albania’s economic growth. Methodology: In the econometric analysis phase of the study, spanning the years 1995-2023, an econometric model was created and examined using short-term Structural Vector Autoregression (SVAR) and long-term Vector Error Correction Model (VECM) analysis in the STATA software program. Findings: As a result, it has been determined that there is a short-term and long-term cointegration relationship between tourism and economic growth. In this context, diversification of tourism revenues and a return to growth policies will be an important element in the process of sustainable growth.

Keywords

• Albania
• Tourism
• Economic Growth
• Structural Vector Autoregression (SVAR)
• Vector Error Correction Model (VECM)

The Impact of Tourism on Economic Growth: The Case of Albania

Öz

Purpose: Tourism plays a key role in the economic development of many countries, especially in developing nations, by generating jobs, attracting foreign exchange, and reducing trade deficits. This study examines the impact of tourism revenues on Albania's economic growth. Methodology: In the econometric analysis phase of the study, spanning the years 1995-2023, an econometric model was created and examined using short-term SVAR (Structural Vector Autoregression) and long-term VECM (Vector Error Correction Model) analysis in the STATA software program. Findings: As a result, it has been determined that there is a short-term and long-term cointegration relationship between tourism and economic growth. In this context, diversification of tourism revenues and a return to growth policies will be an important element in the process of sustainable growth.

Anahtar Kelimeler

• Tourism
• economic growth
• SVAR
• VECM

Kaynakça

1. Albaladejo et al. (2014) “Tourism, Economic Groëth and The Environment: A Panel Data Approach for Mediterranean Countries”.
2. Algan & Gencer (2015) “The Relationship Betëeen Tourism and Economic Growth: Evidence From The Panel Data Analysis of Selected Countries”.
3. Altıner (2019) “The Relationship Betëeen Tourism and Economic Groëth: Evidence from Turkey”.
4. Bahar, O. (2006). “The Impact Of Tourism Sector on Turkey’s Economic Growth: VAR Analysis Approach.” Management and Economics: Celal Bayar University Faculty of Economics and Administrative Sciences Journal,13(2), 137-150.
5. Barutçugil, İ. (1989) “Tourism Management.” Istanbul: Beta Press Publishing Distribution.
6. Belloumi (2010) “The Relationship Betëeen Tourism Receipts, Real Effective Exchange Rate And Economic Groëth in Tunisia”.
7. Besnik Feati (2013) “Exchange Rate Pass-Through in Transition Economies: The Case of Republic of Macedonia”
8. Chou (2013) “The Impacts Of Tourism On Economic Growth: A Panel Data Analysis Of 19 Countries”.

9. Dritsakis (2012) “Tourism Development and Economic Groëth In Seven Mediterranean Countries: A Panel Data Approach”.
10. Instat (2024) – Instituti i Statistikave te Shqiperise – ëëë.instat.gov.al
11. İsmail Cem ÖZKURT (2022) “The Relationship of Tourism Revenues And Economic Growth in Turkey: The Ardl Approach”
12. Johansen, S. (1991). “Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models.” Econometrica, 59(6), 1551-1580.
13. Karaçor, Z. & Konya, S. (2017) “An Empirical Application On Examining The Relationship Betëeen Tourism Revenues and Economic Groëth in Turkey” International Journal of Academic Value Studies (Javstudies), 3(14), 104-116.
14. Kirca, A., Yılmaz, S., & Çelik, H. (2019). Confirming The Long-Term Relationship Between Tourism Demand and GDP: Evidence From The Johansen Cointegration Test. Journal of Tourism Economics, 28(2), 142-159.
15. Koyuncu (2014) “Tourism, Economic Groëth and Causality: A Panel Data Analysis”.
16. Lütkepohl, H. (2005). “New Introduction to Multiple Time Series Analysis.” Springer.
17. M. Dwyer, P. Forsyth, and W. D. Spurr (2006( “The Economic Impact of Tourism”
18. Mello-Sampayo and Sousa-Vale (2010) “Tourism and Growth in European Countries: A Panel Data Approach”.
19. Muhtaseb dhe Daoud (2017) “Tourism, Energy Consumption and Economic Growth: Evidence from Jordan”
20. R. Johnson dhe D. M. Wood (2009) “Tourism Economics: Impact Analysis and Strategic Implications”
21. World Bank - https://data.ëorldbank.org/indicator/ST.INT.XPND.CD?locations=AL Bank of Albania - ëëë.bankofalbania.org.
22. World Economic Forum (2020) “The Travel and Tourism Competitiveness Report”