Has the tourism-led-growth hypothesis been validated? A comprehensive literature review

The aim of this paper is to provide a comprehensive literature review on the temporalrelationship between tourism and economic growth. Specifically, the role of a such economicactivity, as a promoter of short and long run economic growth, is investigated by assessingthe so-called Tourism Led Growth Hypothesis (TLGH). To this aim, various methodologicalapproaches have been used, such as VAR, VECM, ARDL, ARCH, GARCH, cross sectionand panel data. The cointegrating relationship of the economic variables allows one to test theshort and long run Granger no-causality. Overall, the empirical findings, emerging from theexisting literature, provide evidence that indeed tourism activity drives economicdevelopment in all the countries analysed. This outcome further supports the well-establishedcontribution that international tourism has to the economic development.