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Tourism and regional growth in Europe

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  • E. Marrocu

    ()

  • R. Paci

    ()

Abstract

The paper analyzes the impact of domestic and international tourism on the economic growth process for 179 European regions. The econometric analysis is based on a spatial growth regression framework where the rate of GDP per capita growth at the regional level for the period 1999-2009 is influenced by tourism flows, in addition to the traditional growth variables. Besides controlling for initial conditions, we also include a wide set of covariates to account for the endowment of human and technological capital and for the geographical, social and institutional features of the regions. The results, confirmed by several robustness checks, demonstrate that regional growth is positively affected by domestic and international tourism.

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Bibliographic Info

Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 201235.

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Date of creation: 2012
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Handle: RePEc:cns:cnscwp:201235

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Keywords: europe; spatial dependence; tourism flows; regional economic growth;

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  1. Jacint Balaguer & Manuel Cantavella-Jorda, 2002. "Tourism as a long-run economic growth factor: the Spanish case," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 34(7), pages 877-884.
  2. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, Elsevier, vol. 34(2), pages 143-173, October.
  3. Francesco Pigliaru & Rinaldo Brau & Alessandro Lanza, 2007. "How Fast are Small Tourist Countries Growing? The 1980-2003 Evidence," Working Papers, Fondazione Eni Enrico Mattei 2007.1, Fondazione Eni Enrico Mattei.
  4. B. Dettori & E. Marrocu & R. Paci, 2008. "Total factor productivity, intangible assets and spatial dependence in the European regions," Working Paper CRENoS 200823, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  5. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  6. R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers, Economics Group, Nuffield College, University of Oxford W14&104., Economics Group, Nuffield College, University of Oxford.
  7. Luc Anselin, 2010. "Thirty years of spatial econometrics," Papers in Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 89(1), pages 3-25, 03.
  8. Tamara de la Mata & Carlos Llano-Verduras, 2012. "Spatial pattern and domestic tourism: An econometric analysis using inter-regional monetary flows by type of journey," Papers in Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 91(2), pages 437-470, 06.
  9. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Space and Growth," Tinbergen Institute Discussion Papers, Tinbergen Institute 04-129/3, Tinbergen Institute.
  10. Antonio Ciccone & Robert E. Hall, 1993. "Productivity and the Density of Economic Activity," NBER Working Papers 4313, National Bureau of Economic Research, Inc.
  11. Bianca Biagi & Manuela Pulina, 2009. "Bivariate VAR models to test Granger causality between tourist demand and supply: Implications for regional sustainable growth," Papers in Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 88(1), pages 231-244, 03.
  12. JG. Brida & M. Pulina, 2010. "A literature review on the tourism-led-growth hypothesis," Working Paper CRENoS 201017, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
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