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Why Are Tourism Countries Small and Fast-Growing?

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Author Info
Alessandro Lanza ()
Francesco Pigliaru ()

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Abstract

International tourism is today one of the most important tradable sectors, with expenditure on tourist goods and services representing some 8% of total world export receipts and 5% of world GDP. Cross-country data for 1985-95 on tourism specialisation and economic growth reveal the following regularities: (i) many tourism countries have grown faster compared to the other countries; and (ii) they are small. We use a two-sector endogenous growth model to obtain explanatory hypotheses about these two findings. In particular, we define the conditions required for small countries to specialise in tourism and to enter the faster growth path. Our suggestion is that what matters is a country’s relative endowment of the natural resource, rather than its absolute size.

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Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 199906.

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Date of creation: 1999
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Handle: RePEc:cns:cnscwp:199906

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. repec:cup:macdyn:v:3:y:1999:i:2:p:204-25 is not listed on IDEAS
  2. Gylfason, Thorvaldur & Herbertsson, Tryggvi Thor & Zoega, Gylfi, 1997. "A Mixed Blessing: Natural Resources and Economic Growth," CEPR Discussion Papers 1668, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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  1. Rinaldo Brau & Alessandro Lanza & Francesco Pigliaru, 2006. "How fast are small tourist countries growing? The 1980-2003 evidence," Working Paper CRENoS 200614, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
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  2. Carlos Gómez & Javier Lozano & Javier Rey-Maquieira, 2008. "Environmental policy and long-term welfare in a tourism economy," Spanish Economic Review, Springer, vol. 10(1), pages 41-62, March. [Downloadable!] (restricted)
  3. L. Robin Keller & Elisabetta Strazzera, 2000. "Examining predictive models among discounting models," Working Paper CRENoS 200005, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
  4. Isabel Cortes-Jimenez, 2006. "Tourism and Economic Growth At Regional Level: the Cases of Spain and Italy," ERSA conference papers ersa06p61, European Regional Science Association. [Downloadable!]
  5. C. Antonelli & R. Marchionatti & Stefano Usai, 2000. "Productivity and External Knowledge: The Italian Case," Working Paper CRENoS 200009, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
  6. Cellini, Roberto & Torrisi, Gianpiero, 2009. "The regional public spending for tourism in Italy: an empirical analysis," MPRA Paper 16917, University Library of Munich, Germany. [Downloadable!]
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  7. Vanegas, 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. [Downloadable!]
  8. Robin Naylor, 2001. "Firm profits and the number of firms under unionised oligopoly," Working Paper CRENoS 200109, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
  9. Robin Naylor, 2001. "Industry profits and market size under bilateral oligopoly," Working Paper CRENoS 200108, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
  10. Manuela Pulina & Bianca Biagi, 2006. "Tourism, environmental quality and economic growth: empirical evidence and policy implications," Working Paper CRENoS 200609, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
  11. M. Musumeci, 2000. "Innovazione tecnologica e beni culturali. Uno studio sulla situazione della Sicilia," Working Paper CRENoS 200008, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
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