Advances in Management and Applied Economics

The contribution to economic growth by industry: The Case of Saint Lucia

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• Abstract

   

  In order to alleviate the elevated poverty and crime rate in Saint Lucia, the relationship that exists between many economic variables like tourism and GDP per capita are some of the major concerns for the government of Saint Lucia. In this backdrop, the following study examines the long-run and short-run relationship among agriculture, industry, tourism, trade, services and economic growth in Saint Lucia over the period 1987–2017. Autoregressive distributed lag (ARDL) cointegration technique is used to analyze the relationship among the variables. We observe a positive influence of industry and tourism on economic growth. Based on the results we suggest to allocate more resources to the industry and tourism sectors from the agriculture sector.

   

  Keywords: Industry; GDP per capita; Agriculture; Tourism; Trade; Services; ARDL