The Performance of Tourism Sector and Economic Growth in Nigeria (1996-2010)

Ojo. Thompson Olabode (Ph.D), Oyekunle. Janet Oluwafunmike, Olaleye. O.A.

This study employs the Granger causality test within a multivariate cointegration and error-correction framework to investigate the relationship between tourism arrival, tourism receipts and economic growth in Nigeria. This study covers the annual sample from 1996 to 2010. The main findings of this study are that in the short-run there is uni-directional Granger causality running from tourism arrival and tourism receipts to gross domestic product in Nigeria. While, in the long-run tourism arrival, gross domestic product and tourism receipts are bi-directional Granger causality. Hence, sound and developed tourism sector growth that can attract investors, boost the stock market, industrialization and urbanization and improved efficiency of economic activities via tourism activities should not be left out from the process of economic growth and development in Nigeria.