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Effects of tourism development on economic growth: An empirical study of China based on both static and dynamic spatial Durbin models

Author

Listed:
  • Honghong Liu

    (569755Faculty of Geographical Science, Beijing Normal University, People’s Republic of China)

  • Ye Xiao

    (569755Faculty of Geographical Science, Beijing Normal University, People’s Republic of China)

  • Bin Wang

    (569755Faculty of Geographical Science, Beijing Normal University, People’s Republic of China)

  • Dianting Wu

    (569755Faculty of Geographical Science, Beijing Normal University, People’s Republic of China)

Abstract

This study applies the dynamic spatial Durbin model (SDM) to explore the direct and spillover effects of tourism development on economic growth from the perspective of domestic and inbound tourism. The results are compared with those from the static SDM. The results support the tourism-led-economic-growth hypothesis in China. Specifically, domestic tourism and inbound tourism play a significant role in stimulating local economic growth. However, the spatial spillover effect is limited to domestic tourism, and the spatial spillover effect of inbound tourism is not significant. Furthermore, the long-term effects are much greater than the short-term impact for both domestic and inbound tourism. Plausible explanations of these results are provided and policy implications are drawn.

Suggested Citation

  • Honghong Liu & Ye Xiao & Bin Wang & Dianting Wu, 2022. "Effects of tourism development on economic growth: An empirical study of China based on both static and dynamic spatial Durbin models," Tourism Economics, , vol. 28(7), pages 1888-1913, November.
    • Handle: RePEc:sae:toueco:v:28:y:2022:i:7:p:1888-1913
    DOI: 10.1177/13548166211021175
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