Tourism Specialization, Absorptive Capacity, and Economic Growth
De Vita, Glauco
MetadataShow full item record
This article investigates the relationship between tourism specialization and economic growth while accounting for the absorptive capacity of host (tourism destination) countries, defined in terms of financial system development. We use the system generalized methods-of-moments (SYS-GMM) estimation methodology to investigate this relationship for 129 countries over the period 1995–2011. The results support the hypothesis that the positive effect of tourism specialization on growth is contingent on the level of economic development as well as the financial system absorptive capacity of recipient economies. Consistent with the law of diminishing returns, we also find that for countries with a developed financial system, at exponential levels of tourism specialization, its effect on growth turns negative. Significant policy implications flow from these findings.
Journal of Travel Research;
De Vita, G. and Kyaw, K.S. (2017) 'Tourism specialization, absorptive capacity, and economic growth', Journal of Travel Research, 56(4), pp.423-435
Article published in Journal of Travel Research available at https://doi.org/10.1177/0047287516650042
Showing items related by title, author, subject and abstract.
El-Rabbat, Samar Ahmed Hassan (Cardiff Metropolitan University, 2007)Tourism is critical to the Egyptian economy and spa tourism has been identified as a critical element in diversification of the Egyptian tourism product that is heavily reliant on cultural tourism and particularly focuses ...
Sedgley, Diane; Pritchard, Annette; Morgan, Nigel (ElsevierCardiff School of Management, 2012)There is now a significant body of work analysing the multifaceted connections between tourism and poverty in less developed economies. Far fewer studies discuss the relationships between tourism and poverty in the world’s ...
Manyara, Geoffrey (Cardiff Metropolitan University, 2005)Poverty is the scourge of many developing countries, including Kenya. The World Tourism Organisation (WTO) upholds tourism as a vehicle for economic development and poverty alleviation (EDPA) in developing countries. Amongst ...