Abstract

CRUZ-CHAVEZ, Gustavo R.; HERNANDEZ-TREJO, Víctor; AVILES-POLANCO, Gerzaín  and  VALDIVIA-ALCALA, Ramón. Foreign tourism and economic growth in Mexico. Empirical evidence for Los Cabos. Econ. soc. territ [online]. 2016, vol.16, n.50. ISSN 2448-6183.

Tourism in Mexico is important because it generates economically significant effects on growth. Using quarterly data on international tourist arrivals to Los Cabos (AT), the real exchange rate (RER) and gross domestic product (GDP) in Mexico, we apply co-integration analysis to demonstrate two aspects: a) at least one co-integration vector between domestic product (GDP) in Mexico and the RER and at, we obtain inelastic elasticities for both variables (positive and negative, respectively); and, b) a long-run stable relationship between GDP and AT.

Keywords : Tourism growth; Los Cabos; co-integration; tourism policy in Mexico.