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The Economic Governance Capability of the Government and High-Quality Development of China’s Tourism Industry

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  • Hui Zhang

    (Tourism College, Hunan Normal University, Changsha 410081, China
    School of Economics and Management, Changsha University, Changsha 410014, China)

  • Zancai Xia

    (Tourism College, Hunan Normal University, Changsha 410081, China)

  • Zixin Zeng

    (Business School, Hunan Normal University, Changsha 410081, China)

Abstract

The economic governance capacity of local government in China is instrumental in fostering tourism development quality and sustainability from the aspects of leading resource allocation, maintaining market fairness, and promoting enterprise innovation, yet this important aspect has received limited attention in present research. China’s tourism development quality is evaluated in five dimensions in this study: innovation, greenness, coordination, openness, and sharing. Employing a fixed-effects model with data from 2000 to 2019 for 30 Chinese provinces, the paper empirically tests the influence of government economic governance capacity on the tourism development quality. Our findings reveal several key insights: (1) The economic governance capacity of the government significantly contributes to enhancing the tourism development quality. (2) It is shown in the regression results of the sub-indexes of the government’s economic governance capacity and tourism development quality that the innovative development and green development of the tourism industry can be accelerated strongly by the government’s economic governance capacity, while tourism development quality can be improved significantly by the development of non-state-owned economy, the development of factor market, the development of market intermediary organizations, and the legal system. (3) It is shown in mechanism analysis that the government’s economic governance capacity can stipulate regional competition, industrial structure upgrading, improve the level of informatization, and eventually improve tourism development quality. This comprehensive analysis sheds light on the intricate relationship between local government economic governance capacity and tourism development quality, offering a novel research perspective and valuable reference points for policymakers and scholars engaged in the analysis and construction of sustainable tourism development strategies.

Suggested Citation

  • Hui Zhang & Zancai Xia & Zixin Zeng, 2024. "The Economic Governance Capability of the Government and High-Quality Development of China’s Tourism Industry," Sustainability, MDPI, vol. 16(17), pages 1-18, August.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:17:p:7370-:d:1465001
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    References listed on IDEAS

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    1. Daniel Kaufmann & Aart Kraay, 2002. "Growth without Governance," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2002), pages 169-230.
    2. João Romão & Peter Nijkamp, 2019. "Impacts of innovation, productivity and specialization on tourism competitiveness – a spatial econometric analysis on European regions," Current Issues in Tourism, Taylor & Francis Journals, vol. 22(10), pages 1150-1169, June.
    3. Yin, Ping & Lin, Zhibin & Prideaux, Bruce, 2019. "The impact of high-speed railway on tourism spatial structures between two adjoining metropolitan cities in China: Beijing and Tianjin," Journal of Transport Geography, Elsevier, vol. 80(C).
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