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The relationship among tourism, poverty, and economic development in developing countries

Author

Listed:
  • Namhyun Kim

    (Dongguk University-Gyeongju, Korea)

  • HakJun Song

    (Pai Chai University, Korea)

  • Ju Hyun Pyun

    (Korea University, Korea)

Abstract

This study investigates the relationship among tourism, poverty, and economic development in developing countries. The empirical model is set up using unbalanced panel observations for 69 developing countries for the period 1995–2012. The findings show that tourism has heterogeneous effects on the poverty ratio in terms of a country’s income per capita: the positive effect of tourism on poverty alleviation switches to being negative after a certain threshold of a country’s income level. The results of this study indicate that only the least developed countries (those with an income per capita below international dollar 3400) have benefited from the tourism industry in terms of reducing their poverty ratios.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:toueco:v:22:y:2016:i:6:p:1174-1190
    DOI: 10.1177/1354816616669038
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    2. Lor, Jean Junying & Kwa, Shelly & Donaldson, John A., 2019. "Making ethnic tourism good for the poor," Annals of Tourism Research, Elsevier, vol. 76(C), pages 140-152.
    3. Nicholas M Odhiambo, 2021. "Tourism Development and Poverty Alleviation in Sub-Saharan African Countries: An Empirical Investigation," Working Papers AERI0921, African Economic and Social Research Institute (AESRI).
    4. Nicholas M. Odhiambo, "undated". "Tourism Development And Poverty Alleviation In Sub-Saharan African Countries: An Empirical Investigation," Working Papers AESRI09, African Economic and Social Research Institute (AESRI).
    5. Garidzirai Rufaro & Matiza Tafadzwa, 2020. "Exploring the Tourism-Poverty Alleviation Nexus in the Brics Group of Nations," Ekonomika (Economics), Sciendo, vol. 99(1), pages 93-109, June.
    6. Xia Wang & Peiru Cai, 2022. "The relationship between tourism development and multidimensional poverty reduction: A decoupling analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(4), pages 2501-2518, August.
    7. Lei Zhao & Xin Xia, 2020. "Tourism and poverty reduction: Empirical evidence from China," Tourism Economics, , vol. 26(2), pages 233-256, March.
    8. Shah Imtiyaz Ahmad & Haq Imtiyaz ul, 2022. "The Impact of Tourism Development and Economic Growth on Poverty Reduction in Kazakhstan," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 10(1), pages 77-90, September.
    9. 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.
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