An Empirical Study on Relationship Between Tourism and Economic Growth of China——A Research Based on Data from 1985 to 2009

This paper makes an empirical study on tourism and economic growth of China based on vector auto-regression.Johansen cointegration test indicates that there is a long-term stable cointegration relation among domestic tourism,economic growth and inbound tourism.Through the cointegration model,elasticity of economy growth and inbound tourism to domestic tourism are 0.21 and 1.18 respectively.There are Granger causalities from LNGDP to LNEDT,and LNEIT to LNEDT.Impulse response function analysis shows that there is a stronger positive interaction response among domestic tourism,economic growth and inbound tourism.Finally variance decomposition analyses the contribution of each structure attack to endogenous variables.Based on the empirical study,several suggestions are raised to quicken tourism development of China.