A Revisit of Tourism And Growth Nexus In The Provinces Of China Based On Bootstrap Panel Causality Test With A Fourier Function

<span style="font-size: 13px;">In this study, we collect annual data for 30 regions in China using tourism receipts and gross</span> <span style="font-size: 13px;">domestic product over the period of 1980-2020. Empirical results from Bootstrap Toda-Yamamoto</span> <span style="font-size: 13px;">Granger Causality test with a Fourier function, which consider both cross-sectional dependence</span> <span style="font-size: 13px;">and multiple smooth breaks, support the evidence of feedback hypothesis in most of the regions</span> <span style="font-size: 13px;">except for Jilin that we find the validity of tourism-led-growth hypothesis, Shanxi, and Qinghai</span> <span style="font-size: 13px;">where we find the supportive evidence of growth-led-tourism hypothesis, and for Gansu, Ningxia,</span> <span style="font-size: 13px;">and Xinjiang where we find the strong evidence of neutrality hypothesis. These results further</span> <span style="font-size: 13px;">show the importance of incorporating cross-sectional dependence and smooth breaks in testing</span> <span style="font-size: 13px;">the Granger causality. Our empirical results have important policy implications for the regional</span> <span style="font-size: 13px;">governments in China conducting tourism policy to sustain its regional economic growth.</span>