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Impact of Tourism on Poverty Reduction - Evidence from an Emerging Tourism Market

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  • Le Thanh Tung
  • Le Kien Cuong

Abstract

There are few studies focusing on the effect of tourism on poverty in the emerging tourism markets, however, there is no empirical evi-dence in Vietnam. Our paper is the first one that aims to investigate the impact of tourism on poverty with a new database collected from 61 provinces in Vietnam over the period 2010–2018. The empirical result strongly shows that tourism has a negative and significant impact on poverty in all estimated models. It means that a higher in tourism revenue can lead to a lower poverty rate in the provinces. Besides, labour force and education are found to have a negative and significant effect on poverty. Although foreign direct investment has a negative impact on poverty, however, the coeffi-cients are not significant. Finally, we have some conclusions and implications for policymakers to sustainably reduce the poverty rate of households in the future.

Suggested Citation

  • Le Thanh Tung & Le Kien Cuong, 2020. "Impact of Tourism on Poverty Reduction - Evidence from an Emerging Tourism Market," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 16(3), pages 45-55.
    • Handle: RePEc:mje:mjejnl:v:16:y:2020:i:3:45-55
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    References listed on IDEAS

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    1. Le Thanh Tung, 2019. "Does Foreign Direct Investment Really Support Private Investment in an Emerging Economy? An Empirical Evidence in Vietnam," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 15(1), pages 7-20.
    2. Jacint Balaguer & Manuel Cantavella-Jorda, 2002. "Tourism as a long-run economic growth factor: the Spanish case," Applied Economics, Taylor & Francis Journals, vol. 34(7), pages 877-884.
    3. Mark P. Hampton & Julia Jeyacheya & Pham Hong Long, 2018. "Can Tourism Promote Inclusive Growth? Supply Chains, Ownership and Employment in Ha Long Bay, Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 54(2), pages 359-376, February.
    4. repec:srs:journl:jemt:v:9:y:2018:i:6:p:1135-1144 is not listed on IDEAS
    5. Melville Saayman & Riaan Rossouw & Waldo Krugell, 2012. "The impact of tourism on poverty in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 29(3), pages 462-487, September.
    6. Le TUNG, 2018. "Forecasting the Foreign Tourist Arrivals to Vietnam Using the Autoregressive Integrated Moving Average Method," Journal of Advanced Research in Management, ASERS Publishing, vol. 9(6), pages 1135-1144.
    7. Hanitra Rakotondramaro & Louisa Andriamasy, 2016. "Multivariate Granger Causality among tourism, poverty and growth in Madagascar," Post-Print hal-03145090, HAL.
    8. Armida Alisjahbana & Chris Manning, 2006. "Labour market dimensions of poverty in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(2), pages 235-261.
    9. Jorge Garza-Rodriguez, 2019. "Tourism and Poverty Reduction in Mexico: An ARDL Cointegration Approach," Sustainability, MDPI, vol. 11(3), pages 1-10, February.
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    1. Dias Satria & Joshi Maharani Wibowo, 2021. "Big Data Analysis of Sustainable Tourism Competitiveness in East Java Province," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 14(2), pages 189-203.

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