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Does Tourism Promote Economic Growth in the Ethnic Areas of China?

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  • Xiaoyan Zhu
  • Yingqi He

Abstract

According to the tourism-led economic growth (TLEG) hypothesis, the development of tourism encourages economic growth. However, the effects of TLEG are not obvious in the areas of China predominantly populated by ethnic minority groups. The development of tourism might negatively affect factors of production because of local characteristics and hence impede economic growth. Panel data on twenty-nine provinces in China are examined to verify the TLEG theory in this study. The estimated generalized least squares (cross-section weights) method is applied to test the influence of tourism on human capital. Our empirical analysis shows that the development of tourism negatively affects human capital endogenously. Conclusions are provided at the end of this paper accordingly.

Suggested Citation

  • Xiaoyan Zhu & Yingqi He, 2021. "Does Tourism Promote Economic Growth in the Ethnic Areas of China?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(2), pages 386-399, January.
    • Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:386-399
    DOI: 10.1080/1540496X.2019.1600503
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