David N. Aratuo, Xiaoli L. Etienne, Tesfa Gebremedhin and David M. Fryson
The purpose of this study is to investigate the causal linkages between tourism and economic growth in the USA and determine how they respond to shocks in the system.
Abstract
Purpose
The purpose of this study is to investigate the causal linkages between tourism and economic growth in the USA and determine how they respond to shocks in the system.
Design/methodology/approach
The study uses a variety of time series procedures, including the bounds test, Granger causality test, impulse response functions and generalized variance decomposition to analyze the relationship between monthly tourist arrivals (TA) to the USA, real gross domestic product (GDP) and real effective exchange rates.
Findings
Results suggest that GDP Granger causes TA in the USA in the long run, indicating the economy-driven tourism growth hypothesis. Additionally, a shock to GDP generates a positive and significant effect on TA that persists in the long-run, while exchange rate shocks only have a significant effect in the first six months.
Research limitations/implications
Different tourism sectors may exert different degrees of influence on the economy. The use of aggregate data on TA in the analysis assumes homogeneity in the industry, thus, only represents the average relationship between tourism and GDP.
Practical implications
This study provides insight that shapes the investment, marketing, sustainability decisions of the public and private sectors aim at increasing tourist flows to drive economic development at the national, state and local levels.
Originality/value
Though several studies have examined the factors influencing the international tourist demand of the USA, this is the first to investigate the causal relationships between tourism, GDP and exchange rates for the USA. It is also the first in the US tourism literature to account for the nature of interactions between the three variables because of innovations in the system.
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Kwasi Dartey-Baah, Kwesi Amponsah-Tawiah and David Aratuo
The paper aims to assess the institutional readiness of Ghana prior to and after the production of her first oil. The paper also assesses the influence of politics in directing…
Abstract
Purpose
The paper aims to assess the institutional readiness of Ghana prior to and after the production of her first oil. The paper also assesses the influence of politics in directing the appropriate use of the oil rents in facilitating the developmental needs of the country.
Design/methodology/approach
The paper uses a literature review of the main theories regarding national politics and institutional policies in explaining the economic demise of a country due to a natural resource find. It also uses the natural resource find in Norway as a case study, drawing lessons from the effectiveness of Norway’s institutional policies in harnessing maximum benefits from their oil find and how developing nations such as Ghana can do same.
Findings
The paper establishes that Ghana’s institutional architecture as regards the production of oil and gas is fraught with inadequacies on all fronts as regards regulations, regulators and the needed logistics. Additionally, the paper also highlights the role of Ghana’s political elite in perpetuating these institutional inadequacies.
Originality/value
The paper highlights the insufficiencies in the institutional readiness for Ghana’s oil find and brings to the fore the influence of Ghana’s politics in contributing to these inadequacies.
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Kwasi Dartey‐Baah, Kwesi Amponsah‐Tawiah and David Aratuo
The purpose of this paper is to examine the Ghanaian economy within the context of its macro‐economic indicators and the performance of the agricultural sector against the…
Abstract
Purpose
The purpose of this paper is to examine the Ghanaian economy within the context of its macro‐economic indicators and the performance of the agricultural sector against the backdrop of the exogenous economic explanation of the resource curse. This is aimed at equipping policy makers with the tools needed in identifying symptoms of the Dutch disease as it transitions from an agrarian to an oil economy.
Design/methodology/approach
This is a research paper, employing quantitative and qualitative data of the macro‐economic indicators in the last ten years (2000‐2010) and policy initiatives since the discovery of oil in commercial quantities in Ghana. Furthermore, it also examines theoretical perspectives of the Dutch disease as frames of analysis to gauge the existence of any symptoms of the latter.
Findings
The paper questions a previous World Bank (2009) report classifying the Ghanaian economy as already showing signs of the Dutch disease. The paper suggests that the macro‐economic indicators show resilience and stability of the economy which is necessary for growth. It is observed that various government policies are aimed at improving agriculture inspite of the emerging oil industry. The paper recognizes some areas of concern and recommends further studies to observe the changes in dynamics when the “petro‐dollars” begin to flow into the economy.
Originality/value
This is a pioneering work which seeks to provide early warning signals of the Dutch disease in an emerging oil economy.