Abstract:
Using a dynamic vector error correction model, and catering for dynamism and endogeneity, the
present study attempts to address the question on whether tourism development enhances employment
in Mauritius using time series data for the period 1988-2014. The results show that indeed
tourism expansion has contributed towards boosting direct, indirect and induced employment
in both the long run and short run. The findings also demonstrate that investment in the
tourism sector positively influences the employment variable. Moreover, a uni-directional causality
is found in the investigation running from tourism development to employment creation as a
result of the expansion of the tourism sector.
