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Tourism and regional development: a spatial econometric model for Portugal at municipal level

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  • Ana Catarina Vieira

    (Faculdade de Economia do Porto)

  • Luis Delfim Santos

    (Faculdade de Economia do Porto)

Abstract

This study examines the importance of tourism as a factor for regional economic development in Mainland Portugal, emphasizing the inter-regional spatial spillover effects. A spatial analysis of the main variables of the tourism sector revealed strong evidence of positive spatial autocorrelation across the municipalities of Portugal. A significant spatial clustering of these activities on coastal location was identified, leading to the formation of hot spots in coastal regions and cold spots in inland regions. Furthermore, this work specifies spatial econometric models aiming to estimate the relevance of the tourism sector in regional economic development, on a municipal level. The results show that tourism is a significant driver of regional economic development. Moreover, they revealed the presence of positive and significant inter-regional spillover effects, which strongly enhance tourism’s economic impact.

Suggested Citation

  • Ana Catarina Vieira & Luis Delfim Santos, 2017. "Tourism and regional development: a spatial econometric model for Portugal at municipal level," FEP Working Papers 589, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:589
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    More about this item

    Keywords

    tourism sector; spillover effects; spatial econometrics; Portugal;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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