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How Fast are Small Tourist Countries Growing? The 1980-2003 Evidence

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Author Info
Francesco Pigliaru (University of Cagliari)
Rinaldo Brau (University of Cagliari)
Alessandro Lanza (Fondazione Eni Enrico Mattei and CRENoS)

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Abstract

We analyze the empirical relationship between growth, country size and tourism specialization by using a dataset covering the period 1980-2003. We find that tourism countries grow significantly faster than all the other sub-groups considered in our analysis. Tourism appears to be an independent determining factor for growth, and the reason for that is neither because they are poorer than the average, nor because they are very open to trade. Another finding of our paper is that small states are fast-growing only when they are highly specialized in tourism. In contrast with some previous conclusions in the literature, smallness per se is not good for growth.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2007.1.

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Date of creation: Jan 2007
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Handle: RePEc:fem:femwpa:2007.1

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Related research
Keywords: Small States; Growth; Tourism; Cross Country Comparisons;

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Find related papers by JEL classification:
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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  1. Alessandro Lanza & Francesco Pigliaru, 1999. "Why Are Tourism Countries Small and Fast-Growing?," Working Paper CRENoS 199906, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
  2. Armstrong, H W & Read, R, 2000. "Comparing the Economic Performance of Dependent Territories and Sovereign Microstates," Economic Development and Cultural Change, University of Chicago Press, vol. 48(2), pages 285-306, January.
  3. Armstrong, H. & De Kervenoael, R. J. & Li, X. & Read, R., 1998. "A comparison of the economic performance of different micro-states, and between micro-states and larger countries," World Development, Elsevier, vol. 26(4), pages 639-656, April. [Downloadable!] (restricted)
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  4. Harvey W. Armstrong & Robert Read, 1998. "Trade and Growth in Small States: The Impact of Global Trade Liberalisation," The World Economy, Blackwell Publishing, vol. 21(4), pages 563-585, 06. [Downloadable!] (restricted)
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  5. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May. [Downloadable!] (restricted)
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  6. Armstrong, Harvey & Read, Robert, 1995. "Western European micro-states and EU autonomous regions: The advantages of size and sovereignty," World Development, Elsevier, vol. 23(7), pages 1229-1245, July. [Downloadable!] (restricted)
  7. Briguglio, Lino, 1995. "Small island developing states and their economic vulnerabilities," World Development, Elsevier, vol. 23(9), pages 1615-1632, September. [Downloadable!] (restricted)
  8. Feenstra, Robert C., 1996. "Trade and uneven growth," Journal of Development Economics, Elsevier, vol. 49(1), pages 229-256, April. [Downloadable!] (restricted)
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  9. Read, Robert, 2004. "The Implications of Increasing Globalization and Regionalism for the Economic Growth of Small Island States," World Development, Elsevier, vol. 32(2), pages 365-378, February. [Downloadable!] (restricted)
  10. 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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