Shahid Beheshti University Journal of Economics and Modelling 2476-5775 8 32 2018 02 20 The Relationship between the Quality of Tourism Services and Economic Growth: An Endogenous Growth Model The Relationship between the Quality of Tourism Services and Economic Growth: An Endogenous Growth Model 125 150 67482 FA Majid Dashtban Farooji Assistant Professor, Department of Economics, University of Bojnord Abdollah Khoshnudi Assistant Professor of Economics, Faculty of Humanities, University of Bojnord Sahar Dashtban Faroji PhD Candidate in Economics, Faculty of Economics and Political Sciences, University of Shahid Beheshti Journal Article 2018 03 25 The international tourism industry has a high potential for creating foreign exchange earnings and employment growth. Hence, attention to this industry can play an important role in the economic development of Iran. The study tries to propose a theoretical and empirical model that highlights the role of tourism services quality and endogenous tourism in economic growth. Hence a theoretical growth model of international trade has been employed where tourism is the main reason for growth and quality of tourism services has a positive impact on long-term growth. The study also provides the empirical analysis to test the relation between tourism quality and economic growth in Iran during 1969-2015. The results show that the tourist arrivals and quality of tourism accommodations have a positive effect on domestic GDP, but foreign GDP has a negative effect on it. The findings support a two-way causal relationship between real GDP growth and tourism growth in Iran. The international tourism industry has a high potential for creating foreign exchange earnings and employment growth. Hence, attention to this industry can play an important role in the economic development of Iran. The study tries to propose a theoretical and empirical model that highlights the role of tourism services quality and endogenous tourism in economic growth. Hence a theoretical growth model of international trade has been employed where tourism is the main reason for growth and quality of tourism services has a positive impact on long-term growth. The study also provides the empirical analysis to test the relation between tourism quality and economic growth in Iran during 1969-2015. The results show that the tourist arrivals and quality of tourism accommodations have a positive effect on domestic GDP, but foreign GDP has a negative effect on it. The findings support a two-way causal relationship between real GDP growth and tourism growth in Iran. https://ecoj.sbu.ac.ir/article_67482_37b46cd6067d0ad3954c117a75704059.pdf