Fafurida, FE Ekonomi Pembangunan and Shanty Oktavilia, - and Sucihatiningsih Dian Wisika Prajanti, - and Yoris Adi Maretta, - (2020) Tourism and Economic Development in Indonesia. INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH, 9 (3). pp. 6476-6479. ISSN 2277-8616

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Abstract

Tourism sector is important as the leveraging sector of regional economic growth. It is because tourism activities bring multiplier effect to the economic sector movement in it. The Indonesian government encourages the tourism sector development because it is expected to be fast enough to accelerate the increase in economy and social welfare. This research analyzes a relationship between the tourism using the proxy with the number of international tourist visits and the economic development in Indonesia by using two models of econometric data panel (33 provinces in 2011-2017 period of time). The first model hypothesis covering gross domestic regional income (GDRB), human development index (HDI), and international trade (TRD) has the positive effect on tourism variable (WIS), while poverty (POV) has the negative effect. The second model analyzes the relationship between WIS, HDI, and TRD variables and GDRB with a hypothesis having the positive effect. Poverty variable (POV) has the negative effect on the economic development. The result of research on the first model indicates that there is a conformity of the hypothesis and the significant relationship (α = 1 percent) on tourism. Similarly, the second model also indicates the significant result and is in accordance with the hypothesis. The findings in this study indicate that tourism sector is capable to give the positive effect on the economic development in Indonesia during the period of research

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