Tourism and economic growth: the case of Mauritius

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Abstract:

Tourism is now believed to provide an impetus to the economic progress of developing nations and its importance is gaining widespread recognition. In fact, the relationship between exports and growth is the subject of ongoing debate, but the nature of exports has received little attention. Despite the continuous efforts of developing countries to increase their exports, this strategy often adds little foreign exchange to their balance of payments. For many reasons, the non-traditional exports of developing countries have too often failed to prove effective in economic development and so tourism is increasingly seen as something of a saviour. This paper focuses on the success story of a small island economy, Mauritius. Once regarded as an extreme case of a mono-crop economy, relying very predominantly on the export of sugar, Mauritius is now a reputed exporter of non-traditional goods (textiles) and services (tourism). Using cointegration and causality tests, the author's results lend support to the contention that tourism has promoted growth, and further evidence suggests that tourism has a significant positive impact on Mauritian economic development.

Keywords: CAUSALITY; COINTEGRATION; EXPORTS; GROWTH; MAURITIUS

Document Type: Regular Paper

DOI: http://dx.doi.org/10.5367/0000000042430962

Publication date: December 1, 2004

More about this publication?
  • Tourism Economics, published bimonthly, is a peer-reviewed journal devoted to the economics and finance of tourism worldwide. Articles address the components of the tourism product (accommodation; restaurants; merchandizing; attractions; transport; entertainment; tourist activities); and the economic organization of tourism at micro and macro levels (market structure; role of public/private sectors; community interests; strategic planning; marketing; finance; economic development).

    Fast Track. Tourism Economics Fast Track papers have been peer-reviewed, revised and fully accepted for publication. However, although these are the final versions from the authors, they are unedited manuscripts and will undergo a rigorous editing process before their appearance in an issue of the journal. This means that the Fast Track manuscripts may not conform to journal style in terms of presentation, spelling and other usages. They may also contain errors of typography, grammar, spelling, referencing, etc, all of which will be corrected in the processes of copy-editing and proofreading.
    Tourism Economics operates a Fast Track online publication system so that papers can be published and made available almost immediately on final acceptance by the journal. Each Fast Track article is given a DOI. When the paper is assigned to an issue, this DOI will automatically be transferred to the article in the journal issue.
    Fast Track articles may be cited using the DOI. Citations should include the author's or authors' name(s), the title of the article, the title of the journal followed by the words Fast Track, the year of Fast Track publication and the DOI. For example:

    Smith, J. (2013), Article title, Tourism Economics Fast Track, DOI xxxxxxxx.

    Once the paper has been published in an issue of the journal, the DOI will automatically resolve to that final version and the article can be cited in accordance with normal bibliographical conventions.

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