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A comparison of the moderating effect of tourism reliance on the economic development for islands and other countries

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  • Bojanic, David C.
  • Lo, Melody

Abstract

Tourism is usually one of the top industries in most countries, especially islands. However, there is some question as to whether there is a negative potential impact if a country relies too much on tourism as a means of economic development to the detriment of other industries such as manufacturing and agriculture. The purpose of this paper is to examine the moderating effect of tourism reliance on the relationship between tourism development and economic development for regular countries and island economies, including “small island developing states” (SIDS). This study uses quantile regression on panel data from the WDI database from 1995 through 2014 for all of the countries that report tourism and economic data. The findings demonstrate that tourism reliance does have a moderating effect on the relationship between tourism development and economic development for all countries, but mainly at higher levels of economic development.

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  • Bojanic, David C. & Lo, Melody, 2016. "A comparison of the moderating effect of tourism reliance on the economic development for islands and other countries," Tourism Management, Elsevier, vol. 53(C), pages 207-214.
    • Handle: RePEc:eee:touman:v:53:y:2016:i:c:p:207-214
    DOI: 10.1016/j.tourman.2015.10.006
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    Cited by:

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    4. à lvarez-Albelo, Carmen D. & Hernández-Martín, Raúl & Padrón-Fumero, Noemi, 2020. "The effects on tourism of airfare subsidies for residents: The key role of packaging strategies," Journal of Air Transport Management, Elsevier, vol. 84(C).
    5. Jitendra Sharma & Subrata Kumar Mitra, 2021. "Asymmetric relationship between tourist arrivals and employment," Tourism Economics, , vol. 27(5), pages 952-970, August.
    6. Nyasha, Sheilla & Odhiambo, Nicholas M., 2021. "Determinants of Tourism Development: Empirical Evidence from Three Developing Countries," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 74(3), pages 335-368.
    7. S. Nyasha & N.M. Odhiambo, 2021. "Determinants of Tourism Development: Empirical Evidence from Three Developing Countries," Working Papers AESRI-2021-19, African Economic and Social Research Institute (AESRI), revised Jan 2021.
    8. Pablo M. Canero Morales & Salvador Moral Cuadra & Francisco Orgaz Agüera & Juan Antonio Jimber, 2017. "Análisis de las facilidades del turismo fronterizo y su relación con la satisfacción del turista," Revista de Economía del Caribe 17150, Universidad del Norte.
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    10. Shakeela, Aishath & Weaver, David, 2018. "“Managed evils” of hedonistic tourism in the Maldives: Islamic social representations and their mediation of local social exchange," Annals of Tourism Research, Elsevier, vol. 71(C), pages 13-24.
    11. Chi, Yuan & Liu, Dahai & Qu, Yubing & Zhang, Zhiwei & Liu, Zhenhang, 2023. "Archipelagic human-land spatial interrelations: An empirical study in Shengsi Archipelago, China," Land Use Policy, Elsevier, vol. 130(C).
    12. Jiménez, Juan Luis & Valido, Jorge & Pellicer, Alfonso Antonio, 2023. "Evaluating the effect of air transport resident subsidies on non-residents tourists’ expenditure," Journal of Air Transport Management, Elsevier, vol. 106(C).
    13. Francis Baidoo & Elikplimi Komla Agbloyor & Vera Ogeh Lassey Fiador & Nana Amaniampong Marfo, 2022. "Do countries’ geographical locations moderate the tourism-led economic growth nexus in sub-Saharan Africa?," Tourism Economics, , vol. 28(4), pages 1009-1039, June.
    14. Jun Zhang & Li Cheng, 2019. "Threshold Effect of Tourism Development on Economic Growth Following a Disaster Shock: Evidence from the Wenchuan Earthquake, P.R. China," Sustainability, MDPI, vol. 11(2), pages 1-22, January.
    15. Hyo-Jae Joun & Hany Kim, 2020. "Productivity Evaluation of Tourism and Culture for Sustainable Economic Development: Analyzing South Korea’s Metropolitan Regions," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
    16. Eric Olabode Olabisi, 2018. "Revisiting the Tourism-Economic Growth Nexus: The Case of Economic Community of West African States," Business & Management Compass, University of Economics Varna, issue 1, pages 21-30.
    17. Nguyen Tan Phong & Huynh Tien, 2021. "Water resource management and island tourism development: insights from Phu Quoc, Kien Giang, Vietnam," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 17835-17856, December.
    18. Yuichi Furukawa & Kenji Kondoh & Shigemi Yabuuchi, 2019. "Tourism, Capital and Labor Inflows and Regional Development," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 25(2), pages 221-233, May.
    19. Theodore Panagiotidis & Maurizio Mussoni & Georgios Voucharas, 2023. "How Important is Tourism for Growth?," Working Paper series 23-13, Rimini Centre for Economic Analysis.
    20. Ngozi Helen Oguchi & Fen Luo, 2021. "Estimating the Nexus of Tourism on Sustainable Development Goals in Nigeria," Technium Social Sciences Journal, Technium Science, vol. 20(1), pages 751-771, June.
    21. Ioannis Kostakis, 2020. "Is Tourism a Key Factor for Economic Growth? Fresh Evidence from South Europe Using Panel Cointegration and PVAR Analyses," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 6(2), pages 123-138, December.
    22. Fabio Mazzola & Pietro Pizzuto & Giovanni Ruggieri, 2022. "Tourism and territorial growth determinants in insular regions: A comparison with mainland regions for some European countries (2008–2019)," Papers in Regional Science, Wiley Blackwell, vol. 101(6), pages 1331-1382, December.
    23. Ioannis Kostakis & Eleni Theodoropoulou, 2017. "Spatial analysis of the nexus between tourism–human capital–economic growth," Tourism Economics, , vol. 23(7), pages 1523-1534, November.
    24. Baidoo, Francis & Pan, Lei & Fiador, Vera Ogeh Lassey & Agbloyor, Elikplimi Komla, 2022. "Importing to Feed International Tourists: Growth Implications for Islands across the Globe," MPRA Paper 111964, University Library of Munich, Germany.

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