Check causal relation between income growth and GDP growth of tourism in Iran

Dariush rahmati¹ Bahman Gholami²

1) Department Agricultural Economics Payame Noor University.IR.of IRAN,PO Box 19395-3697,Tehran,Iran
2) Department of Management Payame Noor University.IR.of IRAN,PO Box 19395-3697,Tehran,Iran

IOI Code : XYAC-ZCAAK
Publication : 3rd.International Conference on Modern Research’s in Management,Economics & Accounting(3meaconf.com)
Abstract :
    In this study, to investigate the causal relation between income growth and GDP growth of tourism as an indicator for the economic development of Granger causality test was used. Granger causality test three assumptions, in this case the effect of tourism on the development of economic growth, the effect of economic development on tourism revenue growth, and the interaction between the two variables on the check.The results showed that tourism revenue growth that is representative of the development of tourism on the development of the economy is ineffective. This result was expected given the data available in Iran. For low income from tourism in our country can not have an impact on the growth and development of the economy. GDP growth or in other words, economic development is affecting the development of tourism. It concluded that economic growth and development in Iran on the development of tourism and decisive influence can not be stated with certainty.

Keywords : gdp growth tourism granger causality approach iran