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The Spatial Externalities of Tourism Activities in Poverty Reduction

Author

Listed:
  • Pablo Ponce

    (School of Economics, Universidad Nacional de Loja, 11050 Loja, Ecuador)

  • Nathalie Aguirre-Padilla

    (School of Economics, Universidad Técnica Particular de Loja, 11050 Loja, Ecuador)

  • Cristiana Oliveira

    (European University of the Canary Islands, 38300 Sta. Cruz de Tenerife, Spain)

  • José Álvarez-García

    (Financial Economy and Accounting Department, Faculty of Business, Finance and Tourism, University of Extremadura, 10071 Caceres, Spain)

  • María de la Cruz del Río-Rama

    (Business Management and Marketing Department, Faculty of Business Sciences and Tourism, University of Vigo, 32004 Ourense, Spain)

Abstract

Poverty is one of the main indicators of economic development worldwide, in such a way that one of the Sustainable Development Goals is to eradicate poverty in all its forms worldwide. The objective of this research was to examine the effect of the gross value added (GVA) of tourism on poverty in the 198 contiguous Ecuadorian cantons. The methodology used was the application of a set of spatial econometric models to capture the regional effect of tourism on poverty. Data were obtained from the Central Bank of Ecuador and the National Survey of Employment, Unemployment and Under-Employment of the National Institute of Statistics and Census (INEC). The results show that tourism activities and regional poverty are negatively related; thus, a 1% increase in tourism-related economic activity decreases the regional poverty of the canton itself by 4.31%, and that of neighboring cantons by between 0.7% and 2.4%. The inclusion of the control variables shows that schooling and the mestizo population contribute to reducing the canton’s poverty, since the regions with a high GVA of tourism have high levels of schooling and a mestizo population. Thus, regional poverty increases when the level of schooling increases in neighboring cantons. On the other hand, in cantons with a high Mestizo population, compared to the African-American population, the poverty of the canton and its neighboring regions decreases. Public policy measures which aim at reducing poverty must take into account spatial spills from tourist activity in the cantons.

Suggested Citation

  • Pablo Ponce & Nathalie Aguirre-Padilla & Cristiana Oliveira & José Álvarez-García & María de la Cruz del Río-Rama, 2020. "The Spatial Externalities of Tourism Activities in Poverty Reduction," Sustainability, MDPI, vol. 12(15), pages 1-17, July.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:15:p:6138-:d:392127
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    Cited by:

    1. Odhiambo, Nicholas M, 2021. "Tourism development and poverty alleviation in Sub-Saharan African countries: An empirical investigation," Working Papers 28930, University of South Africa, Department of Economics.
    2. Pablo Ponce & José Álvarez-García & Mary Cumbicus & María de la Cruz del Río-Rama, 2021. "Spatial Externalities of Income Inequality on Security in Latin America," Mathematics, MDPI, vol. 9(3), pages 1-19, January.
    3. The Nguyen Huynh, 2022. "Dynamic spatial effects of determinants of foreign direct investment: A case of the southern key economic region of Vietnam," Australian Economic Papers, Wiley Blackwell, vol. 61(3), pages 436-454, September.
    4. António Cardoso & Amândio da Silva & Manuel Sousa Pereira & Neeta Sinha & Jorge Figueiredo & Isabel Oliveira, 2022. "Attitudes towards Slum Tourism in Mumbai, India: Analysis of Positive and Negative Impacts," Sustainability, MDPI, vol. 14(17), pages 1-18, August.
    5. Xiaonan Qin & Yue Wang & Lina Liu & Wenhua Yuan & Jianchun Li, 2022. "Research on the Development Potential of China’s Pro-Poor Tourism Industry Based on Geographical Nature Evaluation," Sustainability, MDPI, vol. 14(22), pages 1-24, November.
    6. Yafang Bao & Hanjing Jiang & Emily Ma & Zhi Sun & Lihua Xu, 2022. "A Longitudinal Spatial-Temporal Analysis of Ancient Village Tourism Development in Zhejiang, China," Sustainability, MDPI, vol. 15(1), pages 1-20, December.
    7. Qi Wang & Yue’e Liao & Jun Gao, 2022. "Rural Residents’ Intention to Participate in Pro-Poor Tourism in Southern Xinjiang: A Theory of Planned Behavior Perspective," Sustainability, MDPI, vol. 14(14), pages 1-17, July.
    8. Shu Guo & Xiaoying Li & Ning Cao & Ying Wang, 2023. "The Impact of Rural Tourism on the Poverty Vulnerability of Aging Rural Households," Sustainability, MDPI, vol. 15(8), pages 1-17, April.

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