Structural changes, financial and business regulatory measures, energy and tourism demand: Evidence from group of seven countries

The structural change is largely proliferated to adjust the momentous growth in tourism and energy demand, which is regulated by sound financial and business oriented measures in order to sustained economic profit. The objective of the study is to examine the impact of financial factors and business regulatory measures on energy and tourism demand in a group of seven (G-7) countries, by using a consistent time series data from 1995-2015. The results of panel fixed effect regression confirm that financial and business regulatory measures increase energy and tourism demand. The panel causality results confirmed the unidirectional relationship running from finance to tourism and from energy to business regulatory measures that establish the finance-led tourism growth and energy-led business regulation hypothesis, while there is feedback relationship between energy and tourism, and energy and finance, which encourages the implementation of energy expansionary policies for long-run sustained finance and international tourism across countries.