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A comparison of the moderating effect of tourism reliance on the economic development for islands and other countries


  • Bojanic, David C.
  • Lo, Melody


Tourism is usually one of the top industries in most countries, especially islands. However, there is some question as to whether there is a negative potential impact if a country relies too much on tourism as a means of economic development to the detriment of other industries such as manufacturing and agriculture. The purpose of this paper is to examine the moderating effect of tourism reliance on the relationship between tourism development and economic development for regular countries and island economies, including “small island developing states” (SIDS). This study uses quantile regression on panel data from the WDI database from 1995 through 2014 for all of the countries that report tourism and economic data. The findings demonstrate that tourism reliance does have a moderating effect on the relationship between tourism development and economic development for all countries, but mainly at higher levels of economic development.

Suggested Citation

  • Bojanic, David C. & Lo, Melody, 2016. "A comparison of the moderating effect of tourism reliance on the economic development for islands and other countries," Tourism Management, Elsevier, vol. 53(C), pages 207-214.
  • Handle: RePEc:eee:touman:v:53:y:2016:i:c:p:207-214
    DOI: 10.1016/j.tourman.2015.10.006

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    References listed on IDEAS

    1. Adamos Adamou & Sofronis Clerides, 2010. "Prospects and Limits of Tourism-Led Growth: The International Evidence," Review of Economic Analysis, Rimini Centre for Economic Analysis, vol. 2(3), pages 287-303, September.
    2. Teelucksingh, Sonja S. & Watson, Patrick K., 2013. "Linking tourism flows and biological biodiversity in Small Island Developing States (SIDS): evidence from panel data," Environment and Development Economics, Cambridge University Press, vol. 18(04), pages 392-404, August.
    3. E. M. Ekanayake & Aubrey E. Long, 2012. "Tourism Development And Economic Growth In Developing Countries," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 6(1), pages 51-63.
    4. Koenker, Roger, 2004. "Quantile regression for longitudinal data," Journal of Multivariate Analysis, Elsevier, vol. 91(1), pages 74-89, October.
    5. Craigwell, Roland & Maurin, Alain, 2007. "A sectoral analysis of Barbados’ GDP business cycle," MPRA Paper 33428, University Library of Munich, Germany.
    6. Chou, Ming Che, 2013. "Does tourism development promote economic growth in transition countries? A panel data analysis," Economic Modelling, Elsevier, vol. 33(C), pages 226-232.
    7. Fathimath Ghina, 2003. "Sustainable Development in Small Island Developing States," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 5(1), pages 139-165, March.
    8. JG. Brida & M. Pulina, 2010. "A literature review on the tourism-led-growth hypothesis," Working Paper CRENoS 201017, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    9. Jackman M.M., 2012. "Revisiting The Tourism-Led Growth Hypothesis For Barbados: A Disaggregated Market Approach," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 12(2).
    10. repec:eee:touman:v:32:y:2011:i:2:p:377-385 is not listed on IDEAS
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    Cited by:

    1. Pablo M. Cañero Morales & Salvador Moral Cuadra & Francisco Orgaz Agüera & Juan Antonio Jimber, 2017. "Análisis de las facilidades del turismo fronterizo y su relación con la satisfacción del turista," Revista de Economía del Caribe 017150, Universidad del Norte.
    2. repec:eee:anture:v:71:y:2018:i:c:p:13-24 is not listed on IDEAS
    3. repec:gam:jsusta:v:11:y:2019:i:2:p:371-:d:197178 is not listed on IDEAS
    4. repec:kap:iaecre:v:25:y:2019:i:2:d:10.1007_s11294-019-09733-8 is not listed on IDEAS


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