Tourism and Long-Run Economic Growth in Aruba

J.R. Ridderstaat, R. Croes, P. Nijkamp

Research output: Contribution to JournalArticleAcademicpeer-review


This study examines the long-run relationship between tourism development and economic growth in a small island destination. Determining whether the nature of the relationship is unidirectional or bidirectional provides insightful information as to policies to be implemented. This information is crucial in a resource-poor environment, such as a small island destination. The study employs an econometric methodology consisting of unit root testing, co-integration analysis, vector error correction modeling and Granger causality testing. Results confirm the reciprocal hypothesis. The policy implication is that resource allocation supporting both the tourism and tourism-related industries could benefit both tourism development and economic growth.
Original languageEnglish
Pages (from-to)472-487
JournalInternational Journal of Tourism Research
Issue number5
Publication statusPublished - 2014


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