Tourism, development economics, poverty alleviation, and inequality

This chapter outlines selected theories that have been proposed and central questions that have been tested through empirical analysis. It first, in abbreviated manner, presents my own reflection on this delicate policy issue of poverty, second, it clarifies the definition of poverty, its measurement, its public use and its relevance for policy formulation guidance. Third, the chapter follows with an outline of theories and evolution on the empirical links between poverty, inequality, economic growth and tourism. Finally, for the first time, it develops an inequality-economic growth trade index (IGTI) for Costa Rica and Honduras which determines the dampening impacts of inequality and estimate how much economic growth is needed to offset the adverse impact of an increased inequality on poverty.