IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v20y2014i2p207-226.html
   My bibliography  Save this article

The Role of Tourism in Poverty Reduction: An Empirical Assessment

Author

Listed:
  • Robertico Croes

    (Tourism, Events and Attractions, Rosen College of Hospitality Management, University of Central Florida, 9907 Universal Blvd, Orlando, FL 32819, USA)

Abstract

This paper assesses how tourism affects absolute poverty beyond its effects on growth in two developing countries. In particular, the author explores whether tourism spending leads to a decline in the proportion of people below the poverty line. An error correction model is applied to estimate the relationship between poverty and tourism spending. The results reveal that tourism does matter for the poor, but that it does not appear to have systematic effects, and that tourism development matters most for the poor at the lower levels of economic development. The findings from the two developing country case studies show differing impacts of tourism development, and thus the policy implications differ for each case.

Suggested Citation

  • Robertico Croes, 2014. "The Role of Tourism in Poverty Reduction: An Empirical Assessment," Tourism Economics, , vol. 20(2), pages 207-226, April.
    • Handle: RePEc:sae:toueco:v:20:y:2014:i:2:p:207-226
    DOI: 10.5367/te.2013.0275
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5367/te.2013.0275
    Download Restriction: no
    File URL: https://libkey.io/10.5367/te.2013.0275?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Tadayuki Hara, 2012. "Introduction to Tourism Satellite Accounts," Chapters, in: Murat Kasimoglu (ed.), Strategies for Tourism Industry - Micro and Macro Perspectives, IntechOpen.
    2. Javier Capó Parrilla & Antoni Riera Font & Jaume Rosselló Nadal, 2005. "Dutch Disease in Tourism Economies. Evidence from Spain," CRE Working Papers (Documents de treball del CRE) 2005/01, Centre de Recerca Econòmica (UIB ·"Sa Nostra"), revised Jan 2005.
    3. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    4. Alessandro Lanza & Anil Markandya & Francesco Pigliaru (ed.), 2005. "The Economics of Tourism and Sustainable Development," Books, Edward Elgar Publishing, number 3876.
    5. Sandler,Todd, 2001. "Economic Concepts for the Social Sciences," Cambridge Books, Cambridge University Press, number 9780521792622.
    6. M. Thea Sinclair, 1997. "Tourism and Economic Development: A Survey," Studies in Economics 9703, School of Economics, University of Kent.
    7. Juan Luis Eugenio-Martín & Noelia Martín Morales & Riccardo Scarpa, 2004. "Tourism and Economic Growth in Latin American Countries: A Panel Data Approach," Working Papers 2004.26, Fondazione Eni Enrico Mattei.
    8. Pierella Paci & Marcin Sasin, 2008. "Making Work Pay in Bangladesh : Employment, Growth, and Poverty Reduction," World Bank Publications - Books, The World Bank Group, number 6437, December.
    9. Catalina Gutierrez & Pierella Paci & Marco Ranzani, 2008. "Making Work Pay in Nicaragua : Employment, Growth, and Poverty Reduction," World Bank Publications - Books, The World Bank Group, number 6472, December.
    10. World Bank, 2009. "Costa Rica : Competitiveness Diagnostic and Recommendations," World Bank Publications - Reports 3092, The World Bank Group.
    11. Sandler,Todd, 2001. "Economic Concepts for the Social Sciences," Cambridge Books, Cambridge University Press, number 9780521796774.
    12. Tiago Neves Sequeira & Paulo Macas Nunes, 2008. "Does tourism influence economic growth? A dynamic panel data approach," Applied Economics, Taylor & Francis Journals, vol. 40(18), pages 2431-2441.
    13. Nikolaos Dritsakis, 2004. "Tourism as a Long-Run Economic Growth Factor: An Empirical Investigation for Greece Using Causality Analysis," Tourism Economics, , vol. 10(3), pages 305-316, September.
    14. Blake, Adam & Arbache, Jorge Saba & Sinclair, Thea & Teles, Vladimir Kuhl, 2010. "Tourism and poverty relief," Textos para discussão 237, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    15. Margo Hoftijzer & Pierella Paci, 2008. "Making Work Pay in Madagascar : Employment, Growth, and Poverty Reduction," World Bank Publications - Books, The World Bank Group, number 6320, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robertico Croes & Manuel A. Rivera, 2017. "Tourism’s potential to benefit the poor," Tourism Economics, , vol. 23(1), pages 29-48, February.
    2. Cheam Chai Li & Rosli Mahmood & Hussin Abdullah & Ong Soon Chuan, 2013. "Economic Growth, Tourism and Selected Macroeconomic Variables: A Triangular Causal Relationship in Malaysia," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 7(2), pages 185-206, May.
    3. Stanislav H. Ivanov & Craig Webster, 2013. "Tourism's Contribution to Economic Growth: A Global Analysis for the First Decade of the Millennium," Tourism Economics, , vol. 19(3), pages 477-508, June.
    4. Rajeev K. Goel & Jelena Budak, 2010. "Tourism Policies and Cross-Country Growth: A Disaggregated Analysis," Tourism Economics, , vol. 16(3), pages 535-548, September.
    5. Inchausti-Sintes, Federico, 2015. "Tourism: Economic growth, employment and Dutch Disease," Annals of Tourism Research, Elsevier, vol. 54(C), pages 172-189.
    6. Robertico Croes & Manuel Antonio Rivera, 2010. "Testing the Empirical Link between Tourism and Competitiveness: Evidence from Puerto Rico," Tourism Economics, , vol. 16(1), pages 217-234, March.
    7. 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.
    8. Andreas G. Georgantopoulos, 2013. "Tourism Expansion and Economic Development: Var/Vecm Analysis and Forecasts for the Case of India," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(4), pages 464-482, April.
    9. Kasimati Evangelia, 2016. "Does tourism contribute significantly to the Greek economy? A multiplier analysis," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 7(1), pages 55-62, May.
    10. Rivera, Luis & Rojas-Romagosa, Hugo, 2010. "Human capital formation and the linkage between trade and poverty: the cases of Costa Rica and Nicaragua," Documentos de Proyectos 3785, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    11. Brida, Juan Gabriel & Pereyra, Juan Sebastián & Such, María Jesús & Pulina, Manuela, 2011. "Causalidad entre turismo y crecimiento económico de largo plazo: una revisión crítica de la literatura econométrica [Causality between tourism and long-term economic growth: a critical review of th," MPRA Paper 37332, University Library of Munich, Germany, revised 2011.
    12. Namhyun Kim & HakJun Song & Ju Hyun Pyun, 2016. "The relationship among tourism, poverty, and economic development in developing countries," Tourism Economics, , vol. 22(6), pages 1174-1190, December.
    13. Juan Gabriel Brida & Lionello F. Punzo & Wiston Adrián Risso, 2011. "Research Note: Tourism as a Factor of Growth – the Case of Brazil," Tourism Economics, , vol. 17(6), pages 1375-1386, December.
    14. Wenwen Zhang & Yi-Bin Chiu, 2020. "Globalization, Country Risks, and Trade in Tourism Services: Evidence from China," Sustainability, MDPI, vol. 12(14), pages 1-26, July.
    15. Paolo Figini & Laura Vici, 2010. "Tourism and Growth in a Cross Section of Countries," Tourism Economics, , vol. 16(4), pages 789-805, December.
    16. Destek, Mehmet Akif & Aydın, Sercan, 2021. "An Empirical Note on Tourism and Sustainable Development Nexus," MPRA Paper 114219, University Library of Munich, Germany.
    17. Vanegas Sr., Manuel & Croes, Robertico, 2007. "Tourism, Economic Expansion and Poverty in Nicaragua: Investigating Cointegration and Causal Relations," Staff Papers 7306, University of Minnesota, Department of Applied Economics.
    18. Jalil, Abdul & Mahmood, Tahir & Idrees, Muhammad, 2013. "Tourism–growth nexus in Pakistan: Evidence from ARDL bounds tests," Economic Modelling, Elsevier, vol. 35(C), pages 185-191.
    19. Holzner, Mario, 2011. "Tourism and economic development: The beach disease?," Tourism Management, Elsevier, vol. 32(4), pages 922-933.
    20. Robertico R. Croes & Denver E. Severt, 2007. "Research Report: Evaluating Short-Term Tourism Economic Effects in Confined Economies – Conceptual and Empirical Considerations," Tourism Economics, , vol. 13(2), pages 289-307, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:toueco:v:20:y:2014:i:2:p:207-226. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.