Long run economic growth and tourism: inferring from Uruguay

Argentina is the principal source of tourism in Uruguay. This paper analyzes the effects in the long run of tourism from Argentina on the economic growth of Uruguay. Using quarterly data from 1987.I to 2006.IV, the study uses co-integration analysis and shows the existence of one cointegrated vector among Uruguayan real per capita GDP, Argentinean tourism expenditure, and real exchange rate between Uruguay and Argentina, and tests that the causality relationship positively goes in one way from Argentinean tourism expenditure to real per capita GDP of Uruguay.