Tourism-Led Growth Hypothesis: A New Global Evidence

Tang, Chor Foon and Tan, Eu Chye (2018) Tourism-Led Growth Hypothesis: A New Global Evidence. Cornell Hospitality Quarterly, 59 (3). pp. 304-311. ISSN 1938-9655, DOI

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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.

Item Type: Article
Uncontrolled Keywords: corruption; economic growth; political stability; tourism-led growth
Subjects: H Social Sciences > HF Commerce
Divisions: Faculty of Economics & Administration
Depositing User: Ms. Juhaida Abd Rahim
Date Deposited: 27 Feb 2019 02:00
Last Modified: 27 Feb 2019 02:00

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