Economic Growth, Energy Consumption and Tourism Development in Taiwan: A Granger Causality Approach

Abstract:

This study examines the causal relationship among economic growth, energy consumption and tourism development in Taiwan over the period from 1965 to 2010. Three Principle test results emerge from this study. First, test results indicate a long-run equilibrium relationship and a bi-direction of causality between energy consumption and tourism development with one proxy, number of visitors, being more significant than the other, visitor expenditures. Second, a bi-directional causality between energy consumption and economic growth is observed. Third, test results indicate no reciprocal causal relationship between tourism development and economic growth. From an energy conservation and sustainable tourism point of view, it is suggested policy makers and industry leaders develop high value, high profit tourism products that aim on attracting more visitor expenditures rather than numbers of visitor.

• Periodical: Advanced Materials Research (Volumes 524-527)
• Pages: 3376-3379
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.524-527.3376
• Online since: May 2012
• Authors: Ming Liu, Sue Ling Lai, Kuo Cheng Kuo
• Keywords: Co-Integration, Economic Growth, Energy Consumption (EC), Granger Causality, Tourism Development

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