Tourism-Led Growth Hypothesis: A New Global Evidence
Document Type
Article
Publication Date
1-1-2018
Abstract
The primary aim of this study is to determine whether the tourism-led growth hypothesis is globally valid by accounting for countries’ income levels and their institutional qualities, against a panel dataset of 167 countries. The institutional qualities referred to are political stability and corruption control. We employ the dynamic panel generalized method of moments (GMM) approach to examine the relationship. It can be inferred from the exercise that tourism positively contributes to economic growth but the effect varies across countries at different levels of income and institutional qualities. Therefore, the effect of tourism on economic growth is contingent on levels of income and institutional qualities of the host tourism countries. Policy initiatives that aim to promote and strengthen institutional qualities should be undertaken for a country to enjoy the beneficial impact of tourism on economic growth and development.
Keywords
corruption, economic growth, political stability, tourism-led growth
Divisions
FacultyofEconomicsAdministration
Publication Title
Cornell Hospitality Quarterly
Volume
59
Issue
3
Publisher
SAGE Publications