An Exploratory Study of the Impact International Tourism Development Has upon Income Inequality in Selected Baltic States

Over the past decades, the tourism sector has grown into one of the rapidly expanding sectors in the global economy, becoming an important source of income generation and distribution. Even though tourism development is associated with economic growth and increased employment, its impact on income inequality remains ambiguous and depends on economic, institutional and social conditions. The aim of this study is to assess the impact of international tourism receipts on income inequality in Lithuania, Latvia and Estonia in the period of 2004–2024. This study employed a comparative analysis of scientific literature and a multiple regression model based on macroeconomic indicators. The results showed that international tourism receipts did not have a statistically significant impact on income inequality in any of the Baltic countries. However, the robust model analysis confirmed and strengthened the main model results: international tourism in Latvia reduced income inequality but increased it in Estonia. In Lithuania, the impact remained insignificant. Foreign direct investment in Lithuania and GDP per capita in Latvia were statistically significant in explaining income inequality. The findings highlight that the determinants of inequality vary across the Baltic States.