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Tourism Policies and Cross-Country Growth: A Disaggregated Analysis

Author

Listed:
  • Rajeev K. Goel

    (Department of Economics, Illinois State University, Campus Box 4200, Normal, IL 61790-4200, USA)

  • Jelena Budak

    (Institute of Economics, Trg J.F. Kennedy 7, HR-10000 Zagreb, Croatia)

Abstract

Using recent cross-country data for over a hundred nations, this paper examines the effects of various disaggregated tourism policy measures on economic growth. Based on standard growth theory, the model uniquely incorporates tourism variables disaggregated across various dimensions of tourism policy, tourism infrastructure and human resources. Both standard growth models and endogenous growth models are estimated. The authors find that, among a wide set of tourism policies, strengthened tourism safety regulations and government prioritization of the tourism industry boost economic growth, while some tourism initiatives and infrastructure investments seem to have perverse growth effects. All else being equal, economic growth is higher in transition nations.

Suggested Citation

  • Rajeev K. Goel & Jelena Budak, 2010. "Tourism Policies and Cross-Country Growth: A Disaggregated Analysis," Tourism Economics, , vol. 16(3), pages 535-548, September.
    • Handle: RePEc:sae:toueco:v:16:y:2010:i:3:p:535-548
    DOI: 10.5367/000000010792278329
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    References listed on IDEAS

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