Relationship between Tourism, Renewable Energy and Economic Growth in Western Balkan Countries
Ljiljana Kontic - Faculty of Business and Law, University MB, Belgrade, Serbia
Snezana Maksimovic - Faculty of Business and Law, University MB, Belgrade, Serbia
DOI: https://doi.org/10.31410/tmt.2022-2023.63
Ljiljana Kontic - Faculty of Business and Law, University MB, Belgrade, Serbia
Snezana Maksimovic - Faculty of Business and Law, University MB, Belgrade, Serbia
DOI: https://doi.org/10.31410/tmt.2022-2023.63
7th International Thematic Monograph - Modern Management Tools and Economy of Tourism Sector in Present Era, Belgrade, 2022/2023, Published by: Association of Economists and Managers of the Balkans in cooperation with the Faculty of Tourism and Hospitality, Ohrid, North Macedonia; ISSN 2683-5673, ISBN 978-86-80194-56-1 ; Editors: Vuk Bevanda, associate professor, Faculty of Social Sciences, Belgrade, Serbia; Snežana Štetić, full time professor, The College of Tourism, Belgrade, Serbia, Printed by: SKRIPTA International, Belgrade
Abstract: The main aim of this study is to investigate the relationship be- tween tourism, renewable energy and economic growth in Western Balkan countries. Tourism is one of the most significant sectors for growth across the Western Balkan countries. In this study, metadata has been used. A mod- el in which economic growth is a function of renewable energy consumption and tourist arrivals has been explored. To test validity, the Granger causality has been used. The results showed that tourist arrivals had a positive impact on economic growth in Western Balkans. Renewable energy consumption had a significant positive impact on economic growth in all West- ern Balkan countries, too. Based on the research results, the recommendations for policy-makers are presented. The limitations and future research agenda are presented, too.
Keywords: Tourism; Sustainable development; Renewable energy; Economic growth; Western Balkan countries
REFERENCES
Adedoyin, F. F., Nathaniel, S., & Adeleye, N. (2021). An investigation into the anthropogenic nex- us among consumption of energy, tourism, and economic growth: do economic policy un- certainties matter? Environmental Science and Pollution Research, 28(3), 2835-2847. https:// doi.org/10.1007/s11356-020-10638-x
Arzoumanidis, I., Walker, A. M., Petti, L., & Raggi, A. (2021). Life Cycle-Based Sustainabili- ty and Circularity Indicators for the Tourism Industry: A Literature Review. Sustainability, 13(21), 11853. https://doi.org/10.3390/su132111853
Balkan Forum. (2017). Research on Tourism in the Western Balkans. Balkan Forum. Skopje.
Barlett, W., Bonomi, M., & Uvalic, M. (2022). The Economic and Investment Plan for the Western Balkans: assessing the possible economic, social and environmental impact of the proposed Flagship projects. European Union: Brussels.
Ben Jebli, M., Ben Youssef, S., & Apergis, N. (2019). The dynamic linkage between renewable en- ergy, tourism, CO2 emissions, economic growth, foreign direct investment, and trade. Latin American Economic Review, 28(1). https://doi.org/10.1186/s40503-019-0063-7
Berthomieu, C., Cingolani, M., & Ri, A. (2016). Investment for Growth and Development in the Western Balkans. France: University of Nice.
Calderwood, L. U., & Soshkin, M. (2019, September). The travel and tourism competitiveness re- port 2019. World Economic Forum.
Chandler. (2022). Granger Causality Test (https://www.mathworks.com/matlabcentral/fileex- change/25467-granger-causality-test), MATLAB Central File Exchange. Retrieved August 25, 2022.
Dunjic, S., Pezzutto, S., & Zubaryeva, A. (2016). Renewable energy development trends in the Western Balkans. Renewable and Sustainable Energy Reviews, 65, 1026-1032. https://doi. org/10.1016/j.rser.2016.05.051
Enilov, M., & Wang, Y. (2022). Tourism and economic growth: Multi-country evidence from mixed-frequency Granger causality tests. Tourism Economics, 28(5), 1216-1239. https://doi. org/10.1177/1354816621990155
Esch, V., & Palm, V. (2020). The COVID-19 Pandemic in the Western Balkans: Consequences and Policy Approaches.
Eurostat. (2021). Complete Energy Balance. https://ec.europa.eu/eurostat/web/energy/data/database
Government of the Republic of Serbia & Delegation of the European Union. (2021). EU for Cultural Heritage and Tourism, https://www.euzatebe.rs/en/projects/ eu-forcultural-heritage-and-tourism
Haller, A.-P., Butnaru, G. I., Hârșan, G.-D. T., & Ştefănică, M. (2021). The relationship between tourism and economic growth in the EU-28. Is there a tendency towards convergence? Economic Research-Ekonomska Istraživanja, 34(1), 1121-1145. https://doi.org/10.1080/133 1677x.2020.1819852
Isik, C., Dogru, T., & Turk, E. S. (2018). A nexus of linear and non-linear relationships between tour- ism demand, renewable energy consumption, and economic growth: Theory and evidence. In- ternational Journal of Tourism Research, 20(1), 38-49. https://doi.org/10.1002/jtr.2151
Kennell, J., Chaperon, S., Segota, T., & Morrison, A. (2021). Western Balkans tourism policy as- sessment and recommendations. University of Greenwich.
Khanal, A., & Khanal, A. (2022). Is there a long-run relationship between tourist arrivals and economic growth in Nepal? An empirical assessment based on ARDL bounds test ap- proach. GeoJournal of Tourism and Geosites, 43(3), 919–924.
https://doi.org/10.30892/ gtg.43311-905
Kontic, Lj., Bogavac, M., & Zivanovic, N. (2021). Renewable energy potentials in Western Bal- kan Countries: The case of Serbia. In Economic and Social Development: Book of Pro- ceedings. Belgrade.
Kontic, Lj., Vidicki, Dj., & Lazovic, S. T. (2020). Sustainable Development Strategy of Ecolog- ical and Health Tourism: The Case of Novi Sad. Ekonomija razdvajanja Zagreb, 02.-03. December 2019., 309-322.
Leitão, N. C., & Lorente, D. B. (2020). The Linkage between Economic Growth, Renewable En- ergy, Tourism, CO2 Emissions, and International Trade: The Evidence for the European Union. Energies, 13(18), 4838. https://doi.org/10.3390/en13184838
Lu, Z., Gozgor, G., Lau, C. K. M., & Paramati, S. R. (2019). The dynamic impacts of renew- able energy and tourism investments on international tourism: Evidence from the G20 countries. Journal of Business Economics and Management, 20(6), 1102-1120. https://doi. org/10.3846/jbem.2019.10181
Maksimovic, S., & Stamatovic, M. (2021). Does EU funding support the diversification of the tourism offer in Serbia as a response to the Covid-19 pandemic?. Tourism International Scientific Conference Vrnjačka Banja - TISC, 6(1), 500-516. https://doi.org/10.52370/ TISC21500SM
Manzoor, F., Wei, L., Asif, M., Haq, M. Z. U., & Rehman, H. U. (2019). The contribution of sustainable tourism to economic growth and employment in Pakistan. International journal of environmental research and public health, 16 (19), 3785. https://doi.org/10.3390/ ijerph16193785
Maziarz, M. (2020). The philosophy of causality in economics. Causal Inferences and Policy Proposals. https://doi.org/10.4324/9780429346422
Mitrovic, Dj., & Beloglavec, S. T. (2021). Simple tourism sector development index: Crises val- ues. Tourism in South East Europe..., 6, 479-490. https://doi.org/10.20867/tosee.06.32
OECD. (2021). Competitiveness in South East Europe 2021: A Policy Outlook, Competitive- ness and Private Sector Development, OECD Publishing, Paris, https://doi.org/10.1787/ dcbc2ea9-en
OECD/IEA. (2008). Energy in Western Balkans - The Path to Reform and Reconstruction.
France: Paris.
Papapostolou, A., Karakosta, C., Nikas, A., & Psarras, J. (2017). Exploring opportunities and risks for RES-E deployment under Cooperation Mechanisms between EU and Western Balkans: A multi-criteria assessment. Renewable and Sustainable Energy Reviews, 80, 519-530. https://doi.org/10.1016/j.rser.2017.05.190
Pavicevic, M., Quoilin, S., Zucker, A., Krajacic, G., Puksec, T., & Duic, N. (2020). Applying the Dispa-SET model to the Western Balkans power system. Journal of Sustainable Develop- ment of Energy, Water and Environment Systems, 8 (1), 184-212. https://doi.org/10.13044/j. sdewes.d7.0273
Porfido, E. (2020). Tourism development in the Western Balkans: Towards a common policy.
Annual Review of Territorial Governance in Albania, II, 24-45.
Radovanov, B., Dudic, B., Gregus, M., Marcikic Horvat, A., & Karovic, V. (2020). Using a two- stage DEA model to measure tourism potentials of EU countries and Western Balkan countries: An approach to sustainable development. Sustainability, 12 (12), 4903. https:// doi.org/10.3390/su12124903
Riojas-Díaz, K., Jaramillo-Romero, R., Calderón-Vargas, F., & Asmat-Campos, D. (2022). Sus- tainable Tourism and Renewable Energy’s Potential: A Local Development Proposal for the La Florida Community, Huaral, Peru. Economies, 10 (2), 47. https://doi.org/10.3390/ economies10020047
Salahodjaev, R., Sharipov, K., Rakhmanov, N., & Khabirov, D. (2022). Tourism, renewable en- ergy and CO2 emissions: evidence from Europe and Central Asia. Environment, Develop- ment and Sustainability, 24(11), 13282-13293.
https://doi.org/10.1007/s10668-021-01993-x
Selimi, N., Sadiku, M., & Sadiku, L. (2017). The impact of tourism on economic growth in the Western Balkan countries: An empirical analysis. International Journal of Business and Economic Sciences Applied Research, 10 (2). https://doi.org/10.25103/ijbesar.102.02
Svrtinov, V. G., Trajkovska, O. G., Kacarski, E. M., & Koleva, B. (2020). The impact of Cov- id-19 on Western Balkans economies. Journal of Economics, 5 (2), 35-46.
Topalovic, Z., Haas, R., Ajanovic, A., & Hiesl, A. (2022). Economics of electric energy stor- age. The case of Western Balkans. Energy, 238, 121669. https://doi.org/10.1016/j. energy.2021.121669
Trekksoft. (2019). Travel Trends Report 2019. https://www.trekksoft.com/en/resources/ebooks/ travel-trends-report-2019
UNWTO. (2019). International Tourism Highlights - Edition 2019, Madrid: UNWTO. Vourdoubas, J. (2020). The Nexus between tourism and renewable energy resources in the Is-
land of Crete, Greece. American Academic Scientific Research Journal for Engineering,
Technology, and Sciences, 63 (1), 28-40.
WTTC. (2019). Travel and Tourism: Economic Impact 2019, London: WTTC.
Keywords: Tourism; Sustainable development; Renewable energy; Economic growth; Western Balkan countries
REFERENCES
Adedoyin, F. F., Nathaniel, S., & Adeleye, N. (2021). An investigation into the anthropogenic nex- us among consumption of energy, tourism, and economic growth: do economic policy un- certainties matter? Environmental Science and Pollution Research, 28(3), 2835-2847. https:// doi.org/10.1007/s11356-020-10638-x
Arzoumanidis, I., Walker, A. M., Petti, L., & Raggi, A. (2021). Life Cycle-Based Sustainabili- ty and Circularity Indicators for the Tourism Industry: A Literature Review. Sustainability, 13(21), 11853. https://doi.org/10.3390/su132111853
Balkan Forum. (2017). Research on Tourism in the Western Balkans. Balkan Forum. Skopje.
Barlett, W., Bonomi, M., & Uvalic, M. (2022). The Economic and Investment Plan for the Western Balkans: assessing the possible economic, social and environmental impact of the proposed Flagship projects. European Union: Brussels.
Ben Jebli, M., Ben Youssef, S., & Apergis, N. (2019). The dynamic linkage between renewable en- ergy, tourism, CO2 emissions, economic growth, foreign direct investment, and trade. Latin American Economic Review, 28(1). https://doi.org/10.1186/s40503-019-0063-7
Berthomieu, C., Cingolani, M., & Ri, A. (2016). Investment for Growth and Development in the Western Balkans. France: University of Nice.
Calderwood, L. U., & Soshkin, M. (2019, September). The travel and tourism competitiveness re- port 2019. World Economic Forum.
Chandler. (2022). Granger Causality Test (https://www.mathworks.com/matlabcentral/fileex- change/25467-granger-causality-test), MATLAB Central File Exchange. Retrieved August 25, 2022.
Dunjic, S., Pezzutto, S., & Zubaryeva, A. (2016). Renewable energy development trends in the Western Balkans. Renewable and Sustainable Energy Reviews, 65, 1026-1032. https://doi. org/10.1016/j.rser.2016.05.051
Enilov, M., & Wang, Y. (2022). Tourism and economic growth: Multi-country evidence from mixed-frequency Granger causality tests. Tourism Economics, 28(5), 1216-1239. https://doi. org/10.1177/1354816621990155
Esch, V., & Palm, V. (2020). The COVID-19 Pandemic in the Western Balkans: Consequences and Policy Approaches.
Eurostat. (2021). Complete Energy Balance. https://ec.europa.eu/eurostat/web/energy/data/database
Government of the Republic of Serbia & Delegation of the European Union. (2021). EU for Cultural Heritage and Tourism, https://www.euzatebe.rs/en/projects/ eu-forcultural-heritage-and-tourism
Haller, A.-P., Butnaru, G. I., Hârșan, G.-D. T., & Ştefănică, M. (2021). The relationship between tourism and economic growth in the EU-28. Is there a tendency towards convergence? Economic Research-Ekonomska Istraživanja, 34(1), 1121-1145. https://doi.org/10.1080/133 1677x.2020.1819852
Isik, C., Dogru, T., & Turk, E. S. (2018). A nexus of linear and non-linear relationships between tour- ism demand, renewable energy consumption, and economic growth: Theory and evidence. In- ternational Journal of Tourism Research, 20(1), 38-49. https://doi.org/10.1002/jtr.2151
Kennell, J., Chaperon, S., Segota, T., & Morrison, A. (2021). Western Balkans tourism policy as- sessment and recommendations. University of Greenwich.
Khanal, A., & Khanal, A. (2022). Is there a long-run relationship between tourist arrivals and economic growth in Nepal? An empirical assessment based on ARDL bounds test ap- proach. GeoJournal of Tourism and Geosites, 43(3), 919–924.
https://doi.org/10.30892/ gtg.43311-905
Kontic, Lj., Bogavac, M., & Zivanovic, N. (2021). Renewable energy potentials in Western Bal- kan Countries: The case of Serbia. In Economic and Social Development: Book of Pro- ceedings. Belgrade.
Kontic, Lj., Vidicki, Dj., & Lazovic, S. T. (2020). Sustainable Development Strategy of Ecolog- ical and Health Tourism: The Case of Novi Sad. Ekonomija razdvajanja Zagreb, 02.-03. December 2019., 309-322.
Leitão, N. C., & Lorente, D. B. (2020). The Linkage between Economic Growth, Renewable En- ergy, Tourism, CO2 Emissions, and International Trade: The Evidence for the European Union. Energies, 13(18), 4838. https://doi.org/10.3390/en13184838
Lu, Z., Gozgor, G., Lau, C. K. M., & Paramati, S. R. (2019). The dynamic impacts of renew- able energy and tourism investments on international tourism: Evidence from the G20 countries. Journal of Business Economics and Management, 20(6), 1102-1120. https://doi. org/10.3846/jbem.2019.10181
Maksimovic, S., & Stamatovic, M. (2021). Does EU funding support the diversification of the tourism offer in Serbia as a response to the Covid-19 pandemic?. Tourism International Scientific Conference Vrnjačka Banja - TISC, 6(1), 500-516. https://doi.org/10.52370/ TISC21500SM
Manzoor, F., Wei, L., Asif, M., Haq, M. Z. U., & Rehman, H. U. (2019). The contribution of sustainable tourism to economic growth and employment in Pakistan. International journal of environmental research and public health, 16 (19), 3785. https://doi.org/10.3390/ ijerph16193785
Maziarz, M. (2020). The philosophy of causality in economics. Causal Inferences and Policy Proposals. https://doi.org/10.4324/9780429346422
Mitrovic, Dj., & Beloglavec, S. T. (2021). Simple tourism sector development index: Crises val- ues. Tourism in South East Europe..., 6, 479-490. https://doi.org/10.20867/tosee.06.32
OECD. (2021). Competitiveness in South East Europe 2021: A Policy Outlook, Competitive- ness and Private Sector Development, OECD Publishing, Paris, https://doi.org/10.1787/ dcbc2ea9-en
OECD/IEA. (2008). Energy in Western Balkans - The Path to Reform and Reconstruction.
France: Paris.
Papapostolou, A., Karakosta, C., Nikas, A., & Psarras, J. (2017). Exploring opportunities and risks for RES-E deployment under Cooperation Mechanisms between EU and Western Balkans: A multi-criteria assessment. Renewable and Sustainable Energy Reviews, 80, 519-530. https://doi.org/10.1016/j.rser.2017.05.190
Pavicevic, M., Quoilin, S., Zucker, A., Krajacic, G., Puksec, T., & Duic, N. (2020). Applying the Dispa-SET model to the Western Balkans power system. Journal of Sustainable Develop- ment of Energy, Water and Environment Systems, 8 (1), 184-212. https://doi.org/10.13044/j. sdewes.d7.0273
Porfido, E. (2020). Tourism development in the Western Balkans: Towards a common policy.
Annual Review of Territorial Governance in Albania, II, 24-45.
Radovanov, B., Dudic, B., Gregus, M., Marcikic Horvat, A., & Karovic, V. (2020). Using a two- stage DEA model to measure tourism potentials of EU countries and Western Balkan countries: An approach to sustainable development. Sustainability, 12 (12), 4903. https:// doi.org/10.3390/su12124903
Riojas-Díaz, K., Jaramillo-Romero, R., Calderón-Vargas, F., & Asmat-Campos, D. (2022). Sus- tainable Tourism and Renewable Energy’s Potential: A Local Development Proposal for the La Florida Community, Huaral, Peru. Economies, 10 (2), 47. https://doi.org/10.3390/ economies10020047
Salahodjaev, R., Sharipov, K., Rakhmanov, N., & Khabirov, D. (2022). Tourism, renewable en- ergy and CO2 emissions: evidence from Europe and Central Asia. Environment, Develop- ment and Sustainability, 24(11), 13282-13293.
https://doi.org/10.1007/s10668-021-01993-x
Selimi, N., Sadiku, M., & Sadiku, L. (2017). The impact of tourism on economic growth in the Western Balkan countries: An empirical analysis. International Journal of Business and Economic Sciences Applied Research, 10 (2). https://doi.org/10.25103/ijbesar.102.02
Svrtinov, V. G., Trajkovska, O. G., Kacarski, E. M., & Koleva, B. (2020). The impact of Cov- id-19 on Western Balkans economies. Journal of Economics, 5 (2), 35-46.
Topalovic, Z., Haas, R., Ajanovic, A., & Hiesl, A. (2022). Economics of electric energy stor- age. The case of Western Balkans. Energy, 238, 121669. https://doi.org/10.1016/j. energy.2021.121669
Trekksoft. (2019). Travel Trends Report 2019. https://www.trekksoft.com/en/resources/ebooks/ travel-trends-report-2019
UNWTO. (2019). International Tourism Highlights - Edition 2019, Madrid: UNWTO. Vourdoubas, J. (2020). The Nexus between tourism and renewable energy resources in the Is-
land of Crete, Greece. American Academic Scientific Research Journal for Engineering,
Technology, and Sciences, 63 (1), 28-40.
WTTC. (2019). Travel and Tourism: Economic Impact 2019, London: WTTC.
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