TITLE:
Tourism and Employment Spillovers in a Small Island Developing State: A Dynamic Investigation
AUTHORS:
Sheereen Fauzel
KEYWORDS:
Tourism, Employment, VECM
JOURNAL NAME:
Theoretical Economics Letters,
Vol.6 No.2,
April
6,
2016
ABSTRACT: Using a dynamic vector
error correction model, and catering for dynamism and endogeneity, the present
study attempts to address the question on whether tourism development enhances
employment in Mauritius using time series data for the period 1988-2014. The
results show that indeed tourism expansion has contributed towards boosting
direct, indirect and induced employment in both the long run and short run. The
findings also demonstrate that investment in the tourism sector positively
influences the employment variable. Moreover, a uni-directional causality is
found in the investigation running from tourism development to employment
creation as a result of the expansion of the tourism sector.