IDEAS home Printed from https://ideas.repec.org/a/bla/jcmkts/v61y2023i1p236-258.html
   My bibliography  Save this article

Blessing or Curse? The Rise of Tourism‐Led Growth in Europe's Southern Periphery

Author

Listed:
  • Reto Bürgisser
  • Donato Di Carlo

Abstract

Despite being one of the world's major internationally traded services, tourism remains neglected within debates on European integration and growth models. We highlight the rise of tourism‐led growth in southern Europe and argue that the process of European integration has been a double‐edged sword, simultaneously incentivizing and forcing southern European economies to reap their comparative advantage in tourism. While European integration has created the preconditions for the expansion of intra‐European tourism, monetary integration pre‐empts macroeconomic management. Since the eurozone crisis, internal devaluation and fiscal austerity have suppressed the domestic growth drivers, inducing these governments towards an export‐led growth strategy. We document the emergence of unprecedented tourism‐related current account surpluses in southern Europe, driven strongly by tourism imports from the EMU core countries and the UK. Thus, while different export‐led growth strategies now coexist in the EMU, southern Europe's excessive reliance on international tourism for growth comes with severe pitfalls.

Suggested Citation

  • Reto Bürgisser & Donato Di Carlo, 2023. "Blessing or Curse? The Rise of Tourism‐Led Growth in Europe's Southern Periphery," Journal of Common Market Studies, Wiley Blackwell, vol. 61(1), pages 236-258, January.
    • Handle: RePEc:bla:jcmkts:v:61:y:2023:i:1:p:236-258
    DOI: 10.1111/jcms.13368
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jcms.13368
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jcms.13368?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ben Crum, 2013. "Saving the Euro at the Cost of Democracy?," Journal of Common Market Studies, Wiley Blackwell, vol. 51(4), pages 614-630, July.
    2. Gregory W. Fuller, 2018. "Exporting Assets: EMU and the Financial Drivers of European Macroeconomic Imbalances," New Political Economy, Taylor & Francis Journals, vol. 23(2), pages 174-191, March.
    3. Scharpf, Fritz W., 2011. "Monetary union, fiscal crisis and the preemption of democracy," MPIfG Discussion Paper 11/11, Max Planck Institute for the Study of Societies.
    4. Peter Haxton, 2015. "A Review of Effective Policies for Tourism Growth," OECD Tourism Papers 2015/1, OECD Publishing.
    5. Francesca Gambarotto & Stefano Solari, 2015. "The peripheralization of Southern European capitalism within the EMU," Review of International Political Economy, Taylor & Francis Journals, vol. 22(4), pages 788-812, August.
    6. repec:bla:jcmkts:v:48:y:2010:i::p:1127-1147 is not listed on IDEAS
    7. Fritz W. Scharpf, 2011. "Monetary Union, Fiscal Crisis and the Preemption of Democracy," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 6, London School of Economics / European Institute.
    8. Scharpf, Fritz W., 2016. "Forced structural convergence in the eurozone: Or a differentiated European monetary community," MPIfG Discussion Paper 16/15, Max Planck Institute for the Study of Societies.
    9. Bruce M. Russett, 1970. "Interdependence And Capabilities For European Cooperation," Journal of Common Market Studies, Wiley Blackwell, vol. 9(2), pages 143-150, December.
    10. Sofia A. Perez & Manos Matsaganis, 2019. "Export or Perish: Can Internal Devaluation Create Enough Good Jobs in Southern Europe?," South European Society and Politics, Taylor & Francis Journals, vol. 24(2), pages 259-285, April.
    11. Alison Johnston & Aidan Regan, 2018. "Introduction: Is the European Union Capable of Integrating Diverse Models of Capitalism?," New Political Economy, Taylor & Francis Journals, vol. 23(2), pages 145-159, March.
    12. Schelkle, Waltraud, 2017. "The Political Economy of Monetary Solidarity: Understanding the Euro Experiment," OUP Catalogue, Oxford University Press, number 9780198717935.
    13. Blyth, Mark, 2013. "Austerity: The History of a Dangerous Idea," OUP Catalogue, Oxford University Press, number 9780199828302.
    14. Scharpf, Fritz W., 2011. "Monetary union, fiscal crisis and the preemption of democracy," LSE Research Online Documents on Economics 53448, London School of Economics and Political Science, LSE Library.
    15. Anke Hassel, 2014. "Adjustments in the Eurozone: Varieties of Capitalism and the Crisis in Southern Europe," LEQS – LSE 'Europe in Question' Discussion Paper Series 76, European Institute, LSE.
    16. Alison Johnston & Aidan Regan, 2016. "European Monetary Integration and the Incompatibility of National Varieties of Capitalism," Journal of Common Market Studies, Wiley Blackwell, vol. 54(2), pages 318-336, March.
    17. Fritz W. Scharpf, 2011. "Monetary Union, Fiscal Crisis and the Preemption of Democracy," LEQS – LSE 'Europe in Question' Discussion Paper Series 36, European Institute, LSE.
    18. Estol, Judith & Font, Xavier, 2016. "European tourism policy: Its evolution and structure," Tourism Management, Elsevier, vol. 52(C), pages 230-241.
    19. Tisdell, C., 1987. "Tourism, The Environment and Profit," Economic Analysis and Policy, Elsevier, vol. 17(1), pages 13-30.
    20. Amable, Bruno, 2003. "The Diversity of Modern Capitalism," OUP Catalogue, Oxford University Press, number 9780199261147.
    21. Engelbert Stockhammer, 2016. "Neoliberal growth models, monetary union and the Euro crisis. A post-Keynesian perspective," New Political Economy, Taylor & Francis Journals, vol. 21(4), pages 365-379, July.
    22. Francesco Paolo Mongelli, 2005. "What is European Economic and Monetary Union Telling us About the Properties of Optimum Currency Areas?," Journal of Common Market Studies, Wiley Blackwell, vol. 43(3), pages 607-635, September.
    23. Anke Hassel, 2014. "Adjustments in the Eurozone: Varieties of Capitalism and the Crisis in Southern Europe," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 6, London School of Economics / European Institute.
    24. Schmidt, Vivien A., 2002. "The Futures of European Capitalism," OUP Catalogue, Oxford University Press, number 9780199253685.
    25. Alan Dobson, 2010. "Civil Aviation and European Integration: Creating the Seemingly Impossible SEAM," Journal of Common Market Studies, Wiley Blackwell, vol. 48(4), pages 1127-1147, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Miguel Angel Casau & Daniel Herrero, 2024. "Deindustrialization paths and growth models: Germany and Spain in comparative perspective," LEM Papers Series 2024/06, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marta Silva & João Carlos Lopes, 2020. "The structural adjustment of the Portuguese economy in the context of the economic reform of the Eurozone," Working Papers REM 2020/0143, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    2. Krahé, Max, 2023. "Understanding Italy's stagnation," Papers 277913, Dezernat Zukunft - Institute for Macrofinance, Berlin.
    3. Dorothee Bohle, 2017. "Mortgaging Europe’s periphery," LEQS – LSE 'Europe in Question' Discussion Paper Series 124, European Institute, LSE.
    4. V. Sidenko, 2017. "The crisis processes in the EU development: origins and prospects," Economy and Forecasting, Valeriy Heyets, issue 1, pages 7-30.
    5. Kristijan Kotarski & Luka Brkic, 2017. "Political Economy of Banking and Debt Crisis in the EU: Rising Financialization and its Ramifications," Review of Radical Political Economics, Union for Radical Political Economics, vol. 49(3), pages 430-455, September.
    6. Scharpf, Fritz W., 2018. "There is an alternative: A two-tier European currency community," MPIfG Discussion Paper 18/7, Max Planck Institute for the Study of Societies.
    7. Donato Di Carlo & Christian Lyhne Ibsen & Oscar Molina, 2024. "The new political economy of public sector wage-setting in Europe: Introduction to the special issue," European Journal of Industrial Relations, , vol. 30(1), pages 5-30, March.
    8. Karsten Kohler & Engelbert Stockhammer, 2022. "Growing differently? Financial cycles, austerity, and competitiveness in growth models since the Global Financial Crisis," Review of International Political Economy, Taylor & Francis Journals, vol. 29(4), pages 1314-1341, July.
    9. Nikitas Konstantinidis & Konstantinos Matakos & Hande Mutlu-Eren, 2019. "“Take back control”? The effects of supranational integration on party-system polarization," The Review of International Organizations, Springer, vol. 14(2), pages 297-333, June.
    10. Dominik Schraff & Frank Schimmelfennig, 2019. "Eurozone bailouts and national democracy: Detachment or resilience?," European Union Politics, , vol. 20(3), pages 361-383, September.
    11. Sebastian Dellepiane & Niamh Hardiman & Jon Las Heras, 2013. "Building on easy money:The political economy of housing bubbles in Ireland and Spain," Working Papers 201318, Geary Institute, University College Dublin.
    12. Bulbarelli, Miriam, 2016. "The housing finance system in Italy and Spain: Why did a housing bubble develop in Spain - and not in Italy?," PIPE - Papers on International Political Economy 26/2016, Free University Berlin, Center for International Political Economy.
    13. Giandomenico Majone, 2014. "From Regulatory State to a Democratic Default," Journal of Common Market Studies, Wiley Blackwell, vol. 52(6), pages 1216-1223, November.
    14. Bodo Herzog, 2021. "Hidden Blemish in European Law: Judgements on Unconventional Monetary Programmes," Laws, MDPI, vol. 10(2), pages 1-13, March.
    15. Federica Genovese & Gerald Schneider, 2020. "Smoke with fire: Financial crises and the demand for parliamentary oversight in the European Union," The Review of International Organizations, Springer, vol. 15(3), pages 633-665, July.
    16. Engelbert Stockhammer & Syed Mohib Ali, 2018. "Varieties of Capitalism and post-Keynesian economics on Euro crisis," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 44(3), pages 349-370.
    17. Lopes, Luís & Antunes, Margarida, 2016. "From budgetary instrument to the budgetary objective: The Portuguese case," IPE Working Papers 79/2016, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    18. Costas Lapavitsas & Sergi Cutillas, 2022. "National states, transnational institutions, and hegemony in the EU," Evolutionary and Institutional Economics Review, Springer, vol. 19(1), pages 429-448, April.
    19. Sebastian Dellepiane & Niamh Hardiman, 2012. "The New Politics of Austerity: Fiscal Responses to the Economic Crisis in Ireland and Spain," Working Papers 201207, Geary Institute, University College Dublin.
    20. Donato Di Carlo & Oscar Molina, 2024. "Same same but different? The Mediterranean growth regime and public sector wage-setting before and after the sovereign debt crisis," European Journal of Industrial Relations, , vol. 30(1), pages 31-53, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jcmkts:v:61:y:2023:i:1:p:236-258. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-9886 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.