How Fast Are the Tourism Countries Growing? The Cross-country Evidence (original) (raw)
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How Fast are Small Tourism Countries Growing? The 1980-2003 Evidence
SSRN Electronic Journal, 2000
We analyze the empirical relationship between growth, country size and tourism specialization by using a dataset covering the period 1980-2003. We find that tourism countries grow significantly faster than all the other sub-groups considered in our analysis. Tourism appears to be an independent determining factor for growth, and the reason for that is neither because they are poorer than the average, nor because they are very open to trade. Another finding of our paper is that small states are fast-growing only when they are highly specialized in tourism. In contrast with some previous conclusions in the literature, smallness per se is not good for growth. .
How fast are small tourism countries growing? Evidence from the data for 1980–2003
Tourism Economics, 2007
We analyze the empirical relationship between growth, country size and tourism specialization by using a dataset covering the period 1980-2003. We find that tourism countries are small and grow significantly faster than all the other subgroups considered in our analysis. Tourism appears to be an independent determining factor for growth: controlling for initial per-capita income and for trade openness does not weaken the positive correlation between tourism specialization and growth. Another finding of our paper is that small states are fast growing only when are highly specialized in tourism. In contrast with some previous conclusions in the literature, smallness per se is not good for growth. the participants to the conferences held in Cagliari, Palma de Mallorca and Corte. Special thanks for helpful suggestions at the early stages of the research go to Luca De Benedictis. Research assistance by Maria Ester Cassinelli is gratefully acknowledged. Two anonymous referees provided comments that enhanced the exposition of the paper. The usual disclaimer applies for any remaining error.
On the fast economic growth of small countries specialised in tourism
Having grown faster than world GDP since the 1950s, international tourism is today one of the most important tradable sectors, with expenditure on tourist goods and services representing some 8% of total world export receipts and 5% of world GDP. Staring from a broad perspective, two main facts could be pointed out: a) countries specialised in the tourism sector have experienced in the recent past a good economic performance and b) they have a (relatively) small dimension. This paper examines these facts considering with particular attention the dimension point of view. We use a two-sector endogenous growth model to define the conditions required for small countries with a relative large endowment of natural resource to specialise in tourism and to enter the faster growth path. A model based on the size of the natural resource suitable for tourism development is presented and discussed.
Why Are Tourism Countries Small and Fast-Growing?
SSRN Electronic Journal, 2000
International tourism is today one of the most important tradable sectors, with expenditure on tourist goods and services representing some 8% of total world export receipts and 5% of world GDP. Cross-country data for 1985-95 on tourism specialisation and economic growth reveal the following regularities: (i) many tourism countries have grown faster compared to the other countries; and (ii) they are small. We use a two-sector endogenous growth model to obtain explanatory hypotheses about these two findings. In particular, we define the conditions required for small countries to specialise in tourism and to enter the faster growth path. Our suggestion is that what matters is a country's relative endowment of the natural resource, rather than its absolute size.
Tourism and growth in a cross section of countries
Tourism Economics, 2010
We provided an empirical assessment of the relationship between tourism specialisation and economic growth, by updating findings of previous papers written on this issue. We used data for more than 150 countries covering different time spans between 1980 and 2005. Contrary to previous findings (e.g., , tourism-based countries did not grow at a higher rate than non-tourism based countries, except for the 1980-1990 period for which, however, data on international tourism are not fully reliable. . We thank Barbara Di Pietro for research assistance, Rinaldo Brau, Guido Candela and Isabel Cortez-Jimenez for comments on earlier versions of the paper. The usual disclaimers apply.
Prospects and Limits of Tourism-Led Growth: The International Evidence
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We investigate the relationship between tourism specialization and economic growth. We deviate from previous studies -which have reported mixed evidence -by allowing the relationship to take a nonlinear form. We find that tourism specialization is associated with higher rates of economic growth at relatively low levels of specialization but eventually diminishing returns set in and tourism's contribution becomes minimal. The policy lesson is that there is promise for tourism-led growth in developing countries but other economic activities must also be developed in order to carry the economy forward once the potential of tourism-led growth has been exhausted.
Tourism Management, 2011
This paper studies the impacts on economic growth of a small tourism-driven economy caused by an increase in the growth rate of international tourism demand. We present a formal model and empirical evidence. The ingredients of the dynamic model are a large population of intertemporally optimizing agents and an AK technology representing tourism production. The model shows that an increase in the growth of tourism demand leads to transitional dynamics with gradually increasing economic growth and increasing terms of trade. In our empirical application, an econometric methodology is applied to annual data of Antigua and Barbuda from 1970 to 2008. We perform a cointegration analysis to look for the existence of a long-run relationship among variables of economic growth, international tourism earnings and the real exchange rate. The exercise confirms the theoretical findings.
Tourism specialization and economic output in small islands
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