An Econometric Study of the Impact of Tourism on Economic Growth in Algeria During the Period (1995-2019)

Abstract

This study aims to analyze and measure the relationship between tourism and economic
growth in Algeria during the period (1995-2000) in the long and short term, in addition to
determining the direction of the causal relationship between the tourism sector and economic
growth, where we relied on economic growth as a dependent variable, the actual real exchange rate
and Index of openness to world rate an international tourism receipts, which express tourism
activity an independent variable, Using the corrected least squares method (FAMOLS) model, the
study concluded that there is a simultaneous integration relationship between the variable in long
term, as the growth rate of per capita GDP, which expresses economic growth, was positively
associated with international tourism revenues, and inversely with both rate openness and the real
exchange rate, when Ganger’s causal tests showed that there is a unidirectional causal relationship
form to economic growth, which indicates that tourism activities are a useful tool for increasing the
country’s productivity and thus contributing to the promotion of economic growth.