IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v27y2021i4p744-761.html
   My bibliography  Save this article

Beyond Dutch Disease: Are there mediators of the mining–tourism nexus?

Author

Listed:
  • Char-lee Moyle

    (1969Queensland University of Technology, Australia)

  • Fabrizio Carmignani

    (5723Griffith University, Australia)

  • Brent Moyle

    (5723Griffith University, Australia)

  • Sajid Anwar

    (5333University of the Sunshine Coast, Australia; Shanghai Lixin University of Accounting and Finance, China)

Abstract

In recent years, significant work has emerged exploring the relationship between tourism and mining. Generally, the relationship is considered to be negative, the result of crowding out of tourism during mining booms. However, the relationship is likely to be more complicated with mining affecting tourism both directly and indirectly. The indirect effects arise from the mediation role played by foreign direct investment (FDI), governance quality, trade and the real exchange rate. To verify this hypothesis, this article uses an unbalanced panel data set that covers 190 countries over the 2002–2017 period. A structural equation model is used to account for the mediating relationships. The results show a direct negative relationship between natural resource intensity and international tourist arrivals, as well as indirect positive relationship mediated by FDI partially offset by an indirect negative relationship mediated by governance.

Suggested Citation

  • Char-lee Moyle & Fabrizio Carmignani & Brent Moyle & Sajid Anwar, 2021. "Beyond Dutch Disease: Are there mediators of the mining–tourism nexus?," Tourism Economics, , vol. 27(4), pages 744-761, June.
    • Handle: RePEc:sae:toueco:v:27:y:2021:i:4:p:744-761
    DOI: 10.1177/1354816619899223
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1354816619899223
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1354816619899223?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. Mironov, Valeriy V. & Petronevich, Anna V., 2015. "Discovering the signs of Dutch disease in Russia," Resources Policy, Elsevier, vol. 46(P2), pages 97-112.
    2. W. Max Corden, 2012. "Dutch Disease in Australia: Policy Options for a Three-Speed Economy," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 45(3), pages 290-304, September.
    3. McLennan, Char-lee J. & Ritchie, Brent W. & Ruhanen, Lisa M. & Moyle, Brent D., 2014. "An institutional assessment of three local government-level tourism destinations at different stages of the transformation process," Tourism Management, Elsevier, vol. 41(C), pages 107-118.
    4. Torfinn Harding & Anthony J Venables, 2016. "The Implications of Natural Resource Exports for Nonresource Trade," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 64(2), pages 268-302, June.
    5. Carl Henrik Knutsen & Andreas Kotsadam & Eivind Hammersmark Olsen & Tore Wig, 2017. "Mining and Local Corruption in Africa," American Journal of Political Science, John Wiley & Sons, vol. 61(2), pages 320-334, April.
    6. Notteboom, Theo & De Langen, Peter & Jacobs, Wouter, 2013. "Institutional plasticity and path dependence in seaports: interactions between institutions, port governance reforms and port authority routines," Journal of Transport Geography, Elsevier, vol. 27(C), pages 26-35.
    7. Ron Boschma & Ron Martin (ed.), 2010. "The Handbook of Evolutionary Economic Geography," Books, Edward Elgar Publishing, number 12864.
    8. Gregory, Robert G., 2012. "Living standards, terms of trade and foreign ownership: reflections on the Australian mining boom," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(2), pages 1-30.
    9. Llewellyn Leonard & Thema Lebogang, 2018. "Exploring the Impacts of Mining on Tourism Growth and Local Sustainability: The Case of Mapungubwe Heritage Site, Limpopo, South Africa," Sustainable Development, John Wiley & Sons, Ltd., vol. 26(3), pages 206-216, May.
    10. Santana-Gallego, María & Ledesma-Rodríguez, Francisco J. & Pérez-Rodríguez, Jorge V., 2016. "International trade and tourism flows: An extension of the gravity model," Economic Modelling, Elsevier, vol. 52(PB), pages 1026-1033.
    11. Holzner, Mario, 2011. "Tourism and economic development: The beach disease?," Tourism Management, Elsevier, vol. 32(4), pages 922-933.
    12. Pham, Tien & Jago, Leo & Spurr, Ray & Marshall, Justin, 2015. "The Dutch Disease effects on tourism – The case of Australia," Tourism Management, Elsevier, vol. 46(C), pages 610-622.
    13. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    14. Inchausti-Sintes, Federico, 2015. "Tourism: Economic growth, employment and Dutch Disease," Annals of Tourism Research, Elsevier, vol. 54(C), pages 172-189.
    15. Jacint Balaguer & Manuel Cantavella-Jorda, 2002. "Tourism as a long-run economic growth factor: the Spanish case," Applied Economics, Taylor & Francis Journals, vol. 34(7), pages 877-884.
    16. Manuel Rodríguez Díaz & Tomás F. Espino Rodríguez, 2016. "Determining the Sustainability Factors and Performance of a Tourism Destination from the Stakeholders’ Perspective," Sustainability, MDPI, vol. 8(9), pages 1-17, September.
    17. Ellis Connolly & Christine Lewis, 2010. "Structural Change in the Australian Economy," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 1-9, September.
    18. Cavalcanti, Tiago V. de V. & Mohaddes, Kamiar & Raissi, Mehdi, 2011. "Growth, development and natural resources: New evidence using a heterogeneous panel analysis," The Quarterly Review of Economics and Finance, Elsevier, vol. 51(4), pages 305-318.
    19. Zhang, Airong & Moffat, Kieren, 2015. "A balancing act: The role of benefits, impacts and confidence in governance in predicting acceptance of mining in Australia," Resources Policy, Elsevier, vol. 44(C), pages 25-34.
    20. Anthony J. Venables, 2016. "Using Natural Resources for Development: Why Has It Proven So Difficult?," Journal of Economic Perspectives, American Economic Association, vol. 30(1), pages 161-184, Winter.
    21. Biman Chand Prasad, 2008. "Institutions, good governance and economic growth in the Pacific Island countries," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 35(12), pages 904-918, October.
    22. Peter Josef Stauvermann & Ronald Ravinesh Kumar & Syed Jawad Hussain Shahzad & Nikeel N. Kumar, 2018. "Effect of tourism on economic growth of Sri Lanka: accounting for capital per worker, exchange rate and structural breaks," Economic Change and Restructuring, Springer, vol. 51(1), pages 49-68, February.
    23. Glen Robbins & David Perkins, 2012. "Mining Fdi And Infrastructure Development On Africa'S East Coast: Examining The Recent Experience Of Tanzania And Mozambique," Journal of International Development, John Wiley & Sons, Ltd., vol. 24(2), pages 220-236, March.
    24. Moore, Winston & CRAIGWELL, ROLAND, 2008. "Foreign direct investment and tourism in SIDS: evidence from panel causality tests," MPRA Paper 33438, University Library of Munich, Germany.
    25. Breisinger, Clemens & Diao, Xinshen & Thurlow, James, 2009. "Modeling growth options and structural change to reach middle income country status: The case of Ghana," Economic Modelling, Elsevier, vol. 26(2), pages 514-525, March.
    26. Buultjens, Jeremy & Brereton, David & Memmott, Paul & Reser, Joseph & Thomson, Linda & O'Rourke, Tim, 2010. "The mining sector and indigenous tourism development in Weipa, Queensland," Tourism Management, Elsevier, vol. 31(5), pages 597-606.
    27. Mehmet Mehmetoglu, 2018. "medsem: a Stata package for statistical mediation analysis," International Journal of Computational Economics and Econometrics, Inderscience Enterprises Ltd, vol. 8(1), pages 63-78.
    28. repec:zbw:bofitp:2015_003 is not listed on IDEAS
    29. Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-848, December.
    30. Tomohara, Akinori, 2016. "Japan's tourism-led foreign direct investment inflows: An empirical study," Economic Modelling, Elsevier, vol. 52(PB), pages 435-441.
    31. Azmat Gani, 2007. "Governance and foreign direct investment links: evidence from panel data estimations," Applied Economics Letters, Taylor & Francis Journals, vol. 14(10), pages 753-756.
    32. 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.
    33. Sheereen Fauzel & Boopen Seetanah & R.V. Sannassee, 2017. "Analysing the impact of tourism foreign direct investment on economic growth," Tourism Economics, , vol. 23(5), pages 1042-1055, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ngassam, Sylvain B. & Asongu, Simplice A. & Ngueuleweu, Gildas Tiwang, 2024. "A revisit of the natural resource curse in the tourism industry," Resources Policy, Elsevier, vol. 88(C).
    2. Yan Zhang & Jiekuan Zhang, 2023. "Revisiting Tourism Development and Economic Growth: A Framework for Configurational Analysis in Chinese Cities," Sustainability, MDPI, vol. 15(13), pages 1-20, June.

    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. Chang, Kuei-Feng & Lin, Jin-Xu & Lin, Shih-Mo, 2021. "Revisiting the Dutch disease thesis from the perspective of value-added trade," Resources Policy, Elsevier, vol. 72(C).
    2. Marija Beg & Martina Basarac Serti?, 0000. "The Signs Of Dutch Disease In Croatia," Proceedings of Economics and Finance Conferences 11413238, International Institute of Social and Economic Sciences.
    3. Hongru Zhang & Yang Yang, 2019. "Prescribing for the tourism-induced Dutch disease: A DSGE analysis of subsidy policies," Tourism Economics, , vol. 25(6), pages 942-963, September.
    4. David Perrain & Philippe Jean-Pierre, 2019. "The smart destination strategy, a key factor for changes in vulnerable tourist destinations? [La stratégie de destination intelligente, facteur clé des mutations des destinations touristiques vulné," Post-Print hal-02144769, HAL.
    5. Makun, Keshmeer & Jayaraman, TK, 2022. "Tourism and Economic Growth in South Asian Countries: Asymmetric Analysis and Lessons for Mitigating the Adverse Effects of Covid-19 Pandemic," MPRA Paper 111377, University Library of Munich, Germany.
    6. Kristian Orsini & Mario Pletikosa, 2019. "Croatia's Tourism Industry – Part 2: Curse or Blessing?," European Economy - Economic Briefs 047, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    7. Hassan F Gholipour & Reza Tajaddini & Usama Al-mulali, 2022. "Dutch Disease phenomenon and demand for international business travels: Panel ARDL/PMG estimation," Tourism Economics, , vol. 28(5), pages 1401-1415, August.
    8. Nicoletta Corrocher & Camilla Lenzi & Marie-Louise Deshaires, 2020. "The curse of natural resources: an empirical analysis of European regions," Regional Studies, Taylor & Francis Journals, vol. 54(12), pages 1694-1708, December.
    9. 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.
    10. Inchausti-Sintes, Federico, 2015. "Tourism: Economic growth, employment and Dutch Disease," Annals of Tourism Research, Elsevier, vol. 54(C), pages 172-189.
    11. Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Clark, Jeremy, 2017. "The evolution of the natural resource curse thesis: A critical literature survey," Resources Policy, Elsevier, vol. 51(C), pages 123-134.
    12. Nikeel Kumar & Ronald Ravinesh Kumar & Radika Kumar & Peter Josef Stauvermann, 2020. "Is the tourism–growth relationship asymmetric in the Cook Islands? Evidence from NARDL cointegration and causality tests," Tourism Economics, , vol. 26(4), pages 658-681, June.
    13. Nouf Alsharif & Sambit Bhattacharyya & Maurizio Intartaglia, 2016. "Economic Diversification in Resource Rich Countries: Uncovering the State of Knowledge," Working Paper Series 09816, Department of Economics, University of Sussex Business School.
    14. Ben-Salha, Ousama & Dachraoui, Hajer & Sebri, Maamar, 2021. "Natural resource rents and economic growth in the top resource-abundant countries: A PMG estimation," Resources Policy, Elsevier, vol. 74(C).
    15. Ngassam, Sylvain B. & Asongu, Simplice A. & Ngueuleweu, Gildas Tiwang, 2024. "A revisit of the natural resource curse in the tourism industry," Resources Policy, Elsevier, vol. 88(C).
    16. van der Ploeg, Frederick, 2019. "Macro policy responses to natural resource windfalls and the crash in commodity prices," Journal of International Money and Finance, Elsevier, vol. 96(C), pages 263-282.
    17. Nouf Alsharif & Sambit Bhattacharyya, 2022. "Oil Discovery, Boom-Bust Cycle and Manufacturing Slowdown: Evidence from a Large Industry Level Dataset," Working Paper Series 0222, Department of Economics, University of Sussex Business School.
    18. Wei-Bin Zhang, 2017. "Spatial Agglomeration And Economic Development With The Inclusion Of Interregional Tourism," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 62(213), pages 93-128, April - J.
    19. Liu, Jingjing & Nijkamp, Peter & Lin, Derong, 2017. "Urban-rural imbalance and Tourism-Led Growth in China," Annals of Tourism Research, Elsevier, vol. 64(C), pages 24-36.
    20. Maria Savona, 2021. "Revisiting High Development Theory to Explain Upgrading Prospects in Business Services Global Value Chains," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 206-226, April.

    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:27:y:2021:i:4:p:744-761. 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.