Impact of Tourism Sector on Gross Domestic Product Growth in Jordan

Abstract

This study investigates the impact of development of tourism sector on GDP growth rate in Jordan by depending on annual statistics for the period (2010 – 2017); as receipts of tourism sector percentage to exports, arrivals of tourists and expenditures of tourism sector percentage to imports are independent variables, while growth rate of GDP (an indicator of economic growth), is a dependent variable. This paper begins with theoretical studies that analyze the impact of development of tourism sector on GDP growth rate, and empirical studies to analyze this impact. After that, it analyzes the impact of development of tourism sector on GDP growth rate in Jordan by depending on annual statistics for the period (2010 – 2017) by depending on ordinary least squares method by SPSS version. The study finds insignificant impacts of receipts of tourism sector percentage to exports and arrivals of tourists on GDP growth rate in Jordan by depending on annual statistics for the period 2010 to 2017, but there is a negative and significant impact of expenditures of tourism sector percentage to imports on GDP growth rate in Jordan by depending on annual statistics for the period 2010 to 2017. The study recommends decreasing expenditures of tourism sector due to their negative impacts on GDP growth rate.