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This empirical study examines the tourism-led growth hypothesis for Croatia using quarterly data from 2000:1 to 2008:3. The Toda– Yamamoto long-run causality tests reveal positive unidirectional causality from real GDP to international tourism revenues, as well as positive unidirectional causality from real GDP to the real effective exchange rate. Thus, the results lend support for the economic-driven tourism growth hypothesis.
Payne et al. (Sun,) studied this question.
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