Proceedings of the 9th International Conference on Research in Social Sciences
Year: 2024
DOI:
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A Structural Equation That Estimates the Impact of GDP And Some of its Factors on Tourism
Dr. Daniela Lika, Jonida Gashi
ABSTRACT:
This paper investigates the relationship between economic growth and some of its factors such as trade and capital, and Tourism. The interest of this study represents a “system of relationships”, a set of independent variables and a set of dependent variables as well. If a researcher is interested in modeling a complex causal system, with queries that qualify a “system” of relationships, then structural equation modeling is very useful. For this reason, structural equation modeling is used in this study. The analysis examines European countries. The data of the variables used are data belonging to European countries. The structural equation model estimated that the improvement of infrastructure and innovation have a significant effect respectively on trade and capital, which are two crucial factors that affect the economic growth of countries. The model estimated too that economic growth contributes significantly to the growth of tourism. Therefore, it is essential to emphasize that the use of initiatives to improve infrastructure, innovation, and economic growth would boost the development of countries’ Tourism.
keywords: GDP, Gross Capital Formation, SEM, Tourism, Trade