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International Tourism, development and Biodiversity: First Evidence

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  • Andreas Freytag

    ()
    (University of Jena, Faculty of Economics)

  • Christoph Vietze

    ()
    (University of Jena, Faculty of Economics)

Abstract

We analyse whether biodiversity can improve the economic growth of Least Developed Countries (LDCs) by increasing the receipts of tourism as one of the world biggest and fastest growing industries. The intention of our examination is to present an alternative utilization of biodiversity, rather than hunting or the agricultural use of habitats. Our hypothesis is that tourism may be an important chance for economic growth in developing countries. We assume that biodiversity is an important factor influencing the demand for tourism. In other words: a rich biodiversity provides a comparative advantage for most LDCs. Using by a simple growth-model, we conclude that only sustainable tourism shows a steady economic growth in the long run, which may result in an economic convergence from LDCs to Developed Countries. The model is supported by an empirical analysis. We assess the determinants of trade in tourism and comparative advantage therein based on cross-country data of incidence and the rate of endangerment of birds, as the probably best explored taxonomic group. Other exogenous variables are GDP per capita, life expectancy (as determinates for safety and infrastructure), coastline, the distance to the equator and the number of UNESCO-World-Heritage sites. The main findings are that LDCs first seem to have a comparative advantage in (sustainable) tourism, that second incidence of birds has a positive impact on inbound tourism receipts per capita, and that third the rate of endangered to total birds is negatively influencing tourism receipts.

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Bibliographic Info

Paper provided by Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät in its series Jenaer Schriften zur Wirtschaftswissenschaft with number 11/2006.

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Date of creation: 10 Feb 2006
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Handle: RePEc:jen:jenasw:2006-11

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Related research

Keywords: tourism; economic growth; biodiversity conservation;

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References

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  1. Andrew Metrick & Martin L. Weitzman, 1998. "Conflicts and Choices in Biodiversity Preservation," Harvard Institute of Economic Research Working Papers 1836, Harvard - Institute of Economic Research.
  2. John Asafu-Adjaye, 2003. "Biodiversity Loss and Economic Growth: A Cross-Country Analysis," Contemporary Economic Policy, Western Economic Association International, vol. 21(2), pages 173-185, 04.
  3. Nijkamp, Peter, 1998. "Tourism, marketing and telecommuniction: a road towards regional development," Serie Research Memoranda 0028, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  4. R. Rawls & David Laband, 2004. "A Public Choice Analysis of Endangered Species Listings," Public Choice, Springer, vol. 121(3), pages 263-277, December.
  5. Rinaldo Brau & Alessandro Lanza & Francesco Pigliaru, 2003. "How Fast are the Tourism Countries Growing? The cross-country evidence," Working Papers 2003.85, Fondazione Eni Enrico Mattei.
  6. Juan Luis Eugenio-Martín & Noelia Martín Morales & Riccardo Scarpa, 2004. "Tourism and Economic Growth in Latin American Countries: A Panel Data Approach," Working Papers 2004.26, Fondazione Eni Enrico Mattei.
  7. Kay Muir-Leresche & Robert H. Nelson, 2000. "Private Property Rights to Wildlife: The Southern African Experiment," ICER Working Papers 02-2000, ICER - International Centre for Economic Research.
  8. Yair Eilat & Liran Einav, 2004. "Determinants of international tourism: a three-dimensional panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 36(12), pages 1315-1327.
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Cited by:
  1. Andreas Freytag & Roy Thurik, 2007. "Entrepreneurship and its determinants in a cross-country setting," Journal of Evolutionary Economics, Springer, vol. 17(2), pages 117-131, April.

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