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Impacts of Tourism and Fiscal Expenditure on Remote Islands in Japan: A Panel Data Analysis

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Author Info
Noriko Ishikawa (Graduate School of Science and Technology, Kobe University)
Mototsugu Fukushige () (Graduate School of Economics, Osaka University)
Abstract

Japan consists of many small inhabited islands in addition to four main islands. We examine the impact of fiscal expenditure and the number of tourists on per capita taxable income in remote islands using panel data analysis. The results show that both fiscal expenditure and population size have significant positive impacts on per capita taxable income, whereas the number of tourists does not have statistically significant impact. They indicate that tourism development would not work as a substitute for financial support from the government. In other words, continuous financial support may be needed to maintain the islandsf economies.

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File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/0621.pdf
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Publisher Info
Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 06-21.

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Length: 21 pages
Date of creation: Jul 2006
Date of revision:
Handle: RePEc:osk:wpaper:0621

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Web page: http://www.econ.osaka-u.ac.jp/
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Related research
Keywords: Tourism Multiplier; Fiscal Multiplier; Remote Islands; Panel Data Analysis;

Find related papers by JEL classification:
O23 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy
Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting
L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism

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  1. Peter Johnson & Barry Thomas, 1990. "Measuring the Local Employment Impact of a Tourist Attraction: An Empirical Study," Regional Studies, Taylor and Francis Journals, vol. 24(5), pages 395-403, October. [Downloadable!] (restricted)
  2. MacKinnon, James G. & White, Halbert & Davidson, Russell, 1983. "Tests for model specification in the presence of alternative hypotheses : Some further results," Journal of Econometrics, Elsevier, vol. 21(1), pages 53-70, January. [Downloadable!] (restricted)
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  3. Sef R. Baaijens, Peter Nijkamp, Kees Van Montfort, 1998. "Explanatory Meta-analysis for the Comparison and Transfer of Regional Tourist Income Multipliers," Regional Studies, Taylor and Francis Journals, vol. 32(9), pages 839-849, December. [Downloadable!] (restricted)
  4. Gani, Azmat, 1998. "Macroeconomic Determinants of Growth in the South Pacific Island Economies," Applied Economics Letters, Taylor and Francis Journals, vol. 5(12), pages 747-49, December. [Downloadable!] (restricted)
  5. Baaijens, Sef & Nijkamp, Peter, 2000. "Meta-Analytic Methods for Comparative and Exploratory Policy Research: An Application to the Assessment of Regional Tourist Multipliers," Journal of Policy Modeling, Elsevier, vol. 22(7), pages 821-858, December. [Downloadable!] (restricted)
  6. Gounder, Rukmani, 2001. "Aid-Growth Nexus: Empirical Evidence from Fiji," Applied Economics, Taylor and Francis Journals, vol. 33(8), pages 1009-19, June. [Downloadable!] (restricted)
  7. Balaguer, Jacint & Cantavella-Jorda, Manuel, 2002. "Tourism As a Long-Run Economic Growth Factor: The Spanish Case," Applied Economics, Taylor and Francis Journals, vol. 34(7), pages 877-84, May. [Downloadable!] (restricted)
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