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The nonlinear effect of international tourism on income inequality: Testing the Kuznets curve hypothesis

Author

Listed:
  • Pham Nang Thang

    (Ho Chi Minh City Open University, Ho Chi Minh City, Viet Nam)

  • Truong Trung Tin

    (Ho Chi Minh City Open University, Ho Chi Minh City, Viet Nam)

  • Do Le Minh Thu

    (Ho Chi Minh City Open University, Ho Chi Minh City, Viet Nam)

  • Nguyen Tran Thang

    (Ho Chi Minh City Open University, Ho Chi Minh City, Viet Nam)

  • Do Thi Thu Thao

    (Ho Chi Minh City Open University, Ho Chi Minh City, Viet Nam)

Abstract

The study aims to assess the impact of international tourism on income inequality in 67 developing countries on a global scale during the period from 2005 to 2022. The Generalized Method of Moments (GMM) estimate technique is used to estimate econometric models and provide new insights. Quantitative research results indicate that tourism exerts both linear and nonlinear effects on income inequality. Thus, tourism development serves as a mechanism for reducing inequality in developing countries, following an inverted U-shaped pattern. The study's results fill the current research gap and provide a clear answer to the debates in the scientific community when considering the impact of tourism on income inequality in line with the Kuznets curve hypothesis. Furthermore, the models are categorized to examine the influence of macroeconomic factors, internal factors, and international factors on the dependent variable separately, providing a more general frame of reference when studying the relationship between tourism development and income inequality in developing countries.

Suggested Citation

  • Pham Nang Thang & Truong Trung Tin & Do Le Minh Thu & Nguyen Tran Thang & Do Thi Thu Thao, 2026. "The nonlinear effect of international tourism on income inequality: Testing the Kuznets curve hypothesis," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 16(1), pages 112-128.
    • Handle: RePEc:bjw:econen:v:16:y:2026:i:1:p:112-128
    DOI: 10.46223/HCMCOUJS.econ.en.16.1.3996.2026
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    Keywords

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    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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