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Tourism credit consumption expansion and regional economic fluctuations

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  • Zhang, Huanhuan
  • Chen, Mengyang

Abstract

With the rapid development of tourism in China, tourism credit consumption has become a common phenomenon. This paper, by utilizing a large city-level data set of China from 2000 to 2023, explores the impact of tourism credit consumption expansion on regional economic fluctuations. This research reveals strong evidence that tourism credit consumption leads to higher regional economic fluctuations. This effect is particularly outstanding for regions with higher tourism revenue and lower trade openness. The finding holds across various model specifications, instrumental variable estimate and difference-in-differences estimate. In sum, this paper contributes to the studies on tourism and regional economy.

Suggested Citation

  • Zhang, Huanhuan & Chen, Mengyang, 2025. "Tourism credit consumption expansion and regional economic fluctuations," Finance Research Letters, Elsevier, vol. 85(PE).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pe:s1544612325014047
    DOI: 10.1016/j.frl.2025.108149
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    References listed on IDEAS

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