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Proceedings of Eurasia Business Research Conference
4 - 6 June 2015, Nippon Hotel, Istanbul, Turkey, ISBN: 978-1-922069-77-1
Government Expenditure on Tourism Sector and its
Contribution to Economic Growth of Jordan
Bassam Abu Karaki1, Basem Al-Louzi2 and Sliman Alsoboa
The main objective of this research is to propose a theoretical framework based on
macroeconomic analyses to examine the relative importance of Government
expenditure on tourism and Gross Domestic Product (GDP). The work presents a
quantitative exercise describing the evolution of the participation of tourism sector
and its contribution to economic growth. The findings reveal a common-trend and
common-cycle relationship among government tourism expenditure and GDP.
Results of co integration and causality tests using annual data proved that tourism
has contributed positively to growth and further evidence suggests that tourism has
a significant positive effect on Jordanian economic development. The analysis also
show that there is almost a steady contribution of T&T to GDP for the years 19902000 and a sharp increase in the contribution for the years 2000-2010, except for
the year 2009 where there was a decline in the contribution of T&T which may be
due to the international financial crisis and low performance in world tourism
activities for the years 2008-2009.
Keywords: Tourism, Govt. Expenditure, GDP, Visitors Exports, Jordan.
Field of research: Economics
1
Assistant Prof. in Economics, Head, Dept. of Economic, College of Business Admin & Economics - Al Hussein
Bin Talal University, email: [email protected]
2
Associate Prof. in Economics, Al Balqa Applied University. Email: [email protected]