What Is The Causal Relationship Between Economic Growth and Tourism in ASEAN Countries?

Anggit Hamidi, Alvin Sugeng Prasetyo, Kinnatus Zahrah, Putri Mulya Pratiwi

Abstract


Economic growth is defined as the process of increasing a country's production capacity. Increasing Gross Domestic Product (GDP) can be done in many ways, for example by optimizing tourism. Tourism is one of the biggest contributors to the economic sector. This research aims to determine the relationship between economic growth and tourism in ASEAN member countries, namely (way) Tourism led Growth or Economic Driven led Growth, (two-way) Bi-Directional Causality, or Neutral Causality. The method used in this research is a causality panel from 2003 to 2020 with a sample of ASEAN countries. The results of this research show that overall the international tou rism indicator that is classified as good is Inite because these three approaches produce significant probabilities, which means that the relationship between economic growth and tourism in ASEAN member countries is Tourism-led Growth

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