Tourism Specialization, Absorptive Capacity, and Economic Growth

By Glauco De Vita, K. Kyaw. 2017

112 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/9d7d8e407e0634acca474304f037dd56bc42e631

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Citations in the corpus

Dynamic relationship between tourism, economic growth, and environmental quality (2018, result): “The results are in line with (De Vita & Kyaw, 2017; Lee & Brahmasrene, 2013; Paramati, Shahbaz, & Alam, 2017).”
Tourism and Economic Growth: A Meta-regression Analysis (2019, background): “Studies on the TLGH emphasize on the advantages of dynamic models for inter-country comparison to advance the field theoretically and methodologically (De Vita and Kyaw 2016; Kim, Chen, and Jang 2006).”