Ph.D. students in the Department of Economics hold a weekly Brown Bag series on Mondays from noon to 1 p.m. on Zoom. These events provide an opportunity for a student to present and workshop a research paper or idea with peers and faculty. For more information, please contact Bhavya Sinha.

Monday, October 25 | 12-1 p.m.

Zoom Link: https://zoom.us/j/91238444352?pwd=NW5BQi9jYTQrVnNkeG1HVkJRejJKZz09 

Elene Murvanidze, Ph.D. Candidate

“Tourism-Led Growth Hypothesis: A Case Study of Georgia”

Abstract:

Between 2009 and 2016, the republic of Georgia had one of the fastest-growing tourism sectors. To facilitate tourism, the government of Georgia eased its visa regime, began widespread rehabilitation of roads, privatized infrastructure and hotels, and established limited tax incentives for tour operators. The number of international visitors quadrupled, reaching 9.3 million in 2019, and tourism revenue as a share of GDP increased by around eight-fold. With 2.1 tourists per resident, Georgia ranked 51st in the world and 4th in Western Asia. This study investigates the causal relationship between tourism growth and economic development for the Georgian economy. First, the results confirm the tourism-led growth hypothesis for 1997-2019, and findings indicate negative long-run impacts. Second, estimation of the ARDLBT model with FDI and agriculture development as additional controls shows bidirectional causality between tourism development and economic growth. Quarterly data analysis for the 2011-2019 period reveals a reciprocal positive relationship between tourism and real GDP.