The long-term Impact of Tourism on Economic Growth in Algeria Econometric Study over the period 1995-2015

Abstract

This paper examines the impact of tourism on economic growth and development in
Algeria by using the causality analysis among real gross domestic product, real international tourism earning, human capital and gross fixed capital formation. A multivariate autoregressive VAR model is applied for the examined period 1995-2015. The results of cointegration analysis suggested that there is one cointegrated vector among the four variables, Economic Growth (RGDP), Tourism Earning (RITR), Human Capital (SCH) and Gross Fixed Capital Formation (GCH). Granger causality testes based on error correction models (VECM), have indicated that there is a “one-way causality” relation between international tourism earnings and economic
growth