Author(s)

Wurong Shih, Ninh T. H. Do

College of Business, Southern Taiwan University of Science and Technology, Tainan.

Tourism is a potential industry as a new impetus for economic growth of Vietnam, and is identified as a key sector in Vietnamese economy, as such, the Vietnam government has identified the tourism industry as a key sector in the national economy and one of the crucial importance in securing its long-term growth. The study examines the role of tourism in driving the economic growth of Vietnam over the period of 1995-2013 by using Tourism-Led Growth Hypothesis (TLGH). The stability of TLGH is analyzed using a Rolling Window regression technique. The analyses performed in this study are based on an econometric methodology consisting of the pooled Ordinary Least Squares test, unit root test, co-integration analysis, and Granger causality test. The findings show that the TLGH is supported in the case of Vietnam. In other words, tourism has indeed played a key role in driving economic growth in Vietnam in recent decades. Moreover, the Rolling Window regression results confirm the stability of the TLGH in the case of Vietnam.

Tourism, Economic Growth, Tourism-Led Growth Hypothesis, Vietnam

Shih, W. and Do, N. (2016) Impact of Tourism on Long-Run Economic Growth of Vietnam. Modern Economy, 7, 371-376. doi: 10.4236/me.2016.73040.