Prospects and Limits of Tourism-Led Growth: The International Evidence

By Adamos Adamou, Sofronis Clerides. Review of Economic Analysis, 2009

139 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/500e84362444835e3ad77e7e5867fd09731ef8ee

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Citations in the corpus

Urban-rural imbalance and Tourism-Led Growth in China (2017, background): “Some studies argue that tourism may not be able to strengthen economic growth, especially in the long run (Adamou & Clerides, 2009; Lee & Chang, 2008; Tang & Jang, 2009).”
Tourism and GDP (2013, background): “…affect the relationship between tourism and economic growth (Lanza, Temple, and Urga 2003; Sequeira and Nunes 2008), but the degree of specialization in tourism is indeed quite relevant (Adamou and Clerides 2010; Holzner 2011; Narayan et al. 2010; Sequeira and Campos 2005; Sequeira and Nunes 2008).”
Territorial capital, smart tourism specialization and sustainable regional development: experiences from Europe. (2017, background): “…2009; Chou, 2013), or even negative effects of long-term tourism development have been identified, through the transformations within the regional economic structures related to deindustrialization processes (Sheng & Tsui , 2009; Adamou & Clerides, 2009; Capó et al., 2007; Romão et al., 2016).”
Tourism Specialization, Absorptive Capacity, and Economic Growth (2017, methodology): “On the other hand, Sequeira and Nunes (2008) and Adamou and Clerides (2010) find a positive impact, though in the latter study such impact is found to occur only at low levels of specialization and to diminish as a country becomes increasingly specialized.”
Where Can Tourism-Led Growth and Economy-Driven Tourism Growth Occur? (2019, background): “Adamou and Clerides (2010) found that tourism has little or even a negative impact on economic growth at high levels of specialization.”
The Tourism Development–Quality of Life Nexus in a Small Island Destination (2016, background): “Studies by Adamou and Clerides (2009, 2010) and Croes (2011) have suggested that the relationship between TD and economic growth is perhaps nonlinear, and if we assume some form of connectivity between TD, QoL, and economic growth, it is possible that the connection between TD and QoL could also be…”
Revisiting the Tourism-Led Economic Growth Hypothesis: The Case of China (2018, methodology): “The issue of TLGH is actually derived from the export-led growth hypothesis (ELGH) (Adamou and Clerides 2009; Chang, Khamkaew, and McAleer 2009), which are based on the Ricardian trade model. Ricardo (1891) points out that different countries have different comparative advantages in the production o”