The Interactive effect of financial development and tourism on economic growth in Iran

Fatemi Nsab, Seyed Hussein; Hajiha, Zohreh; Emamverdi, Ghodratollah; Baghani, Ali

doi:10.30473/egdr.2021.56261.6064

Document Type : ORIGINAL ARTICLE

Authors

¹ Ph.D. candidate in Finance at Islamic Azad University, South Tehran Branch

² Assistant Professor of Economics at Islamic Azad University, Central Tehran Branch

³ Associate Professor of Accounting at Islamic Azad University, East Tehran branch

⁴ Assistant Professor of Accounting at Islamic Azad University, South Tehran Branch

https://doi.org/10.30473/egdr.2021.56261.6064

Abstract

The tourism industry is the largest and most diverse industry in the world. The impact of tourism on increasing employment and foreign exchange earnings, the prosperity of domestic industries, the expansion of international cooperation has changed the attitude of countries around the world and has found an important place in government policy. Therefore, in this study, the orthogonal effect of financial development and tourism on economic growth in Iran has been modeled using the factor-augmented vector regression model (FAVAR) combined with the model of variable parameters over time (TVP). And using time series data during the years 1363 to 1397 has been studied. The results show that there is a positive and significant relationship between economic growth and tourism and a positive and significant relationship between economic growth and financial development. Financial development such as easy turnover in the country of origin and the simple use of financial instruments to finance tourists play an important role in the growth of this industry. Just as increased financial development leads to economic growth, so does economic growth lead to improved infrastructure and the development of the tourism industry.

Keywords

References

حسینی، سیدمهدی؛ اشرفی، یکتا و صیامی عراقی، ابراهیم (1390). "بررسی رابطه توسعه مالی و رشد اقتصادی در ایران با معرفی متغیرهای جدید". فصلنامه پژوهش‌ها و سیاست‌های اقتصادی، سال نوزدهم، شماره 60، 34-19.

خلیلی عراقی، منصور؛ فرزین وش، اسداله و صدری، حامد (1397). "بررسی اثرات متغیر زمانی توسعه مالی بر رشد اقتصادی: مدل TVP- FAVAR". فصلنامه پژوهش‌های اقتصادی (رشد و توسعه پایدار)، سال نوزدهم، شماره 3، 59-31.

دژپسند، فرهاد و بخارایی، ریحانه (1395). "بررسی رابطه توسعه مالی و رشد اقتصادی در ایران بر اساس الگوی اقتصاد کلان پساکینزی". فصلنامه اقتصاد مالی، شماره 34، 92-59.

شکروی، سمیه و خضری، محسن (1396). "محاسبه شاخص توسعه مالی و بررسی اثرات متغیر زمانی آن بر رشد اقتصادی". فصلنامه پژوهشنامه اقتصادی، سال هفدهم، شماره 67، 341- 315.

شهبازی،کیومرث و سعیدپور، لسیان (1392). "اثر آستانه‌ای توسعه مالی بر رشد اقتصادی در کشورهای دی هشت". فصلنامه علمی پژوهشی پژوهش‌های رشد و توسعه اقتصادی، دوره 3، شماره 12، 38-21.

کازرونی‌‌، علیرضا؛ خداوردیزاده‌‌، صابر و شمالی‌‌، عادل (1394). "بررسی تأثیر توسعه‌‌ی گردشگری بر رفاه اقتصادی". کشورهای دی هشت: رویکرد پانل ایستا‌‌". اولین همایش چشم‌انداز منطقه تربت‌حیدریه در افق 1404.دوره 3،شماره 15 ،273-261

متقی، سمیرا (1395). "بررسی تأثیر عوامل مؤثر بر رشد اقتصادی کشور ایران با تأکید بر صنایع غیرنفتی مطالعه موردی: صنعت گردشگری". فصلنامه انجمن جغرافیای ایران، شماره 49، 401-390.

محمدی، تیمور؛ ناظمان، حمید و خداپرست پیرسایی، یونس (1393). "بررسی رابطه علّیت پویا بین توسعه مالی، باز بودن تجاری و رشد اقتصاد یا مقایسه موردی دو کشور نفتی ایران و نروژ". فصلنامه اقتصاد انرژی ایران، دوره 3، شماره 10، 178-151.

یاوری‌‌، کاظم؛ رضا قلی زاده‌‌، مهدیه؛ آقایی‌‌، مجید و مصطفوی‌‌، سید محمدحسن (1389)" تأثیر مخارج توریسم بر رشد اقتصادی کشورهای عضو سازمان کنفرانس اسلامی". مجله تحقیقات اقتصادی‌‌، دوره 45‌‌، شماره 2، 244-221.

Akadiria, H., Seyi Saint; Kayode Kolawole Eluwole, Ada Chigozie Akadiri, Turgay Avci, (2019) “Does Causality Between Geopolitical Risk, Tourism and Economic Growth Matter? Evidence from Turkey”. Journal of Hospitality and Tourism Management، 35، 526-537.

Arouri, M., Uddin, G., Nawaz, K., Shahbaz, M. & Teulon, F. (2013). “Causal Linkages between Financial Development, Trade Openness and Economic Growth: Fresh Evidence from Innovative Accounting Approach in Case of Bangladesh”. Working Paper Series Business School.

Balli, F., Curry, J. & Balli, H. O. (2015).“Interregional Spillover Effects in New Zealand International Tourism Demand”. Tourism Geographies, 17(2), 262–278.

Beck, T. (2002). “Financial Development and International Trade: Is there a Link?”. Journal of International Economics, 2, 107-131

Friedman, M. & Schwartz A. J. (1963). “A Monetary History of the United States”. Princeton University Press, Princeton، 87، 765-769.

Goldsmith, R. W. (1969). “Financial Structure and Development, New Haven”, U.S., Yale University Press.

Guan, D., Gao, W., Su, W., Li, H. & Hokao, K. (2011). “Modeling and Dynamic Assessment of Urban Economy - Resource - Environment System with a Coupled System Dynamics -Geographic Information System Model”. Ecological Indicators, 11(5), 1333–1344.

Hassan, M., Sanchez, B. & Jung-S. Y. (2011). “Financial Development and Economic Growth: New Evidence from Panel Data”. The Quarterly Review of Economics and Finance, 51, 88–104.

Kenani, J. M. & Fujio, M. (2012). “A Dynamic Causal Linkage between Financial Development, Trade Openness and Economic Growth: Evidence from Malawi”. Interdisciplinary Journal of Contemporary Researchin Business, 4(5), 569–583.

Khan, S. & Omar, S. (2011). “Political Instability and Inflation in Pakistan”. Journal of Asian Economics, 22(6), 540-549.

Koop, G., Leon-Gonzalez, R. & Strachan, R. W. (2009). “On the Evolution of the Monetary Policy Transmission Mechanism”. Journal of Economic Dynamics and Control, 33, 997-1017.

Kumar, R. R., Loganathan, N., Patel, A. & Kumar, R. D. (2015). “Nexus between Tourism Earnings and Economic Growth: A Study of Malaysia”. Quality and Quantity, 49(3), 1101–1120.

Kumar, V. & Rishika, N. (2015). “Financial Sector Development, Foreign Direct Investment and Economic Growth in India: An Empirical Analysis”. Asian Journal Research in Banking and Finance, 7, 179-196.

Marin, D. (1992). “Is the Export-Led Hyphothesis Valid For Industrialized Countries”. Review of Economics and Statistics, 61, 74- 678.

McKinnon, R. I. (1973). “Money and Capital in Economic Development”. Brookings Instructions, Washington DC. 46 ،232-241.

McKinnon, R. I. (1973). “Money and Capital in Economic Development”. Brookings Institutions, Washington DC.46 (232-241)

Morakabati, Y. (2008). “Tourism Activity, Terrorism and Political Instability in the Common Wealth: the Case of Fiji and Kenya”. International Journal of Tourism Research, 10, 537–556.

Nyasha, Sh. & Nicholas, M.O. (2018). “Financial Development and Economic Growth Nexus: A Revisionist Approach”. Economic Notes, 47(1), 223-229.

Rampal, O. (2017). “The Relationship between Tourism, Financial Development and Economic Growth in India”. Future Business Journal, 3(1), 9-22.

Robinson, J. (1952). “The Rate of Interest and other Essays”, London, McMillan.

Schumpeter, J. A. (1934). “The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle”. Transaction Publishers, 35, 332-348.

Shahbaz, M., Kuma, R. R., Ivanov, S. & Loganathan, N. (2016). “The Nexus between Tourism Demand and Output Per Capita, with There Lative Importance of Trade Openness and Financial Development: A study of Malaysia”. Tourism Economics,33، 1–19.

Shahzad, S. J. H., Shahbaz, M., Ferrer, R. & Kumar, R. R. (2017). “Tourism-led Growth Hypothesis in the Top Ten Tourist Destinations: New Evidence Using the Quantile-Onquantile Approach”. Tourism Management, 60, 223–232.

Shaw, E. S. (1973). “Financial Deepening in Economic Development”. New York, Oxford University Press، 55، 131-149.

Shaw, E. S. (1973). “Financial Deepening in Economic Development”. New York, Oxford University Press.55(131-149)

Tang, C. F. & Abosedra, F (2014). “The Impacts Tourism, Energy Consumption and Political Instability on Economic Growth in the MENA Countries. Energy Policy, 68, 458-464.

Tang, C. F. & Tan, E. C. (2013). “How Stable is the Tourism-Led Growth Hypothesis in Malaysia? Evidence from Disaggregated Tourism Markets”. Tourism Management, 37, 52–57.

Toda, H. Y. & Yamamoto, T. (1995). “Statistical Inference in Vector Autoregressions with Possibly Integrated Processes”. Journal of Econometrics, 66(1–2), 225–250.‏

Economic Growth and Development Research

The Interactive effect of financial development and tourism on economic growth in Iran

References

References

Volume 12, Issue 47
June 2022
Pages 77-96

The Interactive effect of financial development and tourism on economic growth in Iran

References

References

Volume 12, Issue 47June 2022Pages 77-96

Volume 12, Issue 47
June 2022
Pages 77-96