IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0301628.html

Do positive and negative shocks of tourism development affect income inequality in a developed country?

Author

Listed:
  • Ngoc Bui Hoang

Abstract

Income inequality is an essential cause of violence, stagnant development, and political instability. This study will examine the positive and negative shocks in tourism development, and the distribution of the interaction between tourism development, economic growth, human capital, globalization, and income inequality will be discussed in Singapore, a developed and top-visited country. By adopting autoregressive distributed lag and non-linear autoregressive distributed lag approaches for panel data from 1978 to 2022, the results indicate an asymmetric cointegration among variables, and positive and negative changes in tourism development lead to decreased income inequality. More specifically, the asymmetric effect of tourism is found both in the short- and long-term, and positive shock has a greater impact than negative shock. At the same time, the findings also reveal that economic growth and globalization enhance, while human capital negatively affects income inequality in Singapore. These findings strengthen the belief of Singapore policy-makers and recommend several significant lessons for developing countries to promote tourism, sustainable development, and reduce income inequality.

Suggested Citation

  • Ngoc Bui Hoang, 2024. "Do positive and negative shocks of tourism development affect income inequality in a developed country?," PLOS ONE, Public Library of Science, vol. 19(4), pages 1-19, April.
    • Handle: RePEc:plo:pone00:0301628
    DOI: 10.1371/journal.pone.0301628
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0301628
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0301628&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0301628?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Murat Cetin & Harun Demir & Selin Saygin, 2021. "Financial Development, Technological Innovation and Income Inequality: Time Series Evidence from Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 156(1), pages 47-69, July.
    2. Carrascal Incera, André & Fernández, Melchor Fernández, 2015. "Tourism and income distribution: Evidence from a developed regional economy," Tourism Management, Elsevier, vol. 48(C), pages 11-20.
    3. Adem Y. Elveren & Gökçer Özgür, 2016. "The Effect of Informal Economy on Income Inequality: Evidence from Turkey," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 63(3), pages 293-312, June.
    4. Matías Braun & Francisco Parro & Patricio Valenzuela, 2019. "Does Finance Alter The Relation Between Inequality And Growth?," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 410-428, January.
    5. Facundo Alvaredo & Thomas Piketty & Emmanuel Saez & Lucas Chancel & Gabriel Zucman, 2018. "World Inequality Report 2018," PSE-Ecole d'économie de Paris (Postprint) halshs-01885458, HAL.
    6. Pesaran, M.H. & Shin, Y., 1995. "An Autoregressive Distributed Lag Modelling Approach to Cointegration Analysis," Cambridge Working Papers in Economics 9514, Faculty of Economics, University of Cambridge.
    7. repec:eme:jbsed0:jbsed-07-2021-0102 is not listed on IDEAS
    8. Agiomirgianakis, George & Serenis, Dimitrios & Tsounis, Nicholas, 2017. "Effective timing of tourism policy: The case of Singapore," Economic Modelling, Elsevier, vol. 60(C), pages 29-38.
    9. Kazeem B. Ajide & Olorunfemi Y. Alimi, 2021. "Income inequality, human capital and terrorism in Africa: Beyond exploratory analytics," International Economics, CEPII research center, issue 165, pages 218-240.
    10. Natalia Porto & Natalia Espinola, 2019. "Labor income inequalities and tourism development in Argentina: A regional approach," Tourism Economics, , vol. 25(8), pages 1265-1285, December.
    11. Breunig, Robert & Majeed, Omer, 2020. "Inequality, poverty and economic growth," International Economics, Elsevier, vol. 161(C), pages 83-99.
    12. Renuka Mahadevan & Sandy Suardi & Chenyu Ji & Zhang Hanyu, 2021. "Is urbanization the link in the tourism–poverty nexus? Case study of China," Current Issues in Tourism, Taylor & Francis Journals, vol. 24(23), pages 3357-3371, December.
    13. Nathalie Scholl & Stephan Klasen, 2019. "Re-estimating the relationship between inequality and growth," Oxford Economic Papers, Oxford University Press, vol. 71(4), pages 824-847.
    14. Jong-Wha Lee & Hanol Lee, 2018. "Human capital and income inequality," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 23(4), pages 554-583, October.
    15. Adem Y. Elveren & Gökçer Özgür, 2016. "The Effect of Informal Economy on Income Inequality: Evidence from Turkey," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 63(3), pages 293-312.
    16. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    17. Li, Hengyun & Chen, Jason Li & Li, Gang & Goh, Carey, 2016. "Tourism and regional income inequality: Evidence from China," Annals of Tourism Research, Elsevier, vol. 58(C), pages 81-99.
    18. Michael R.M. Abrigo & Sang-Hyop Lee & Donghyun Park, 2018. "Human Capital Spending, Inequality, and Growth in Middle-Income Asia," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(6), pages 1285-1303, May.
    19. Hu, Zhining, 2021. "The effect of income inequality on human capital inequality: Evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 471-489.
    20. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70(5), pages 1-9.
    21. Alam, Md. Samsul & Paramati, Sudharshan Reddy, 2016. "The impact of tourism on income inequality in developing economies: Does Kuznets curve hypothesis exist?," Annals of Tourism Research, Elsevier, vol. 61(C), pages 111-126.
    22. Abel Kinyondo & Riccardo Pelizzo, 2015. "Tourism, Development and Inequality: The Case of Tanzania," Poverty & Public Policy, John Wiley & Sons, vol. 7(1), pages 64-79, March.
    23. Yogeeswari Subramaniam & Tajul Ariffin Masron & Nanthakumar Loganathan, 2022. "Tourism and income inequality," Journal of Business and Socio-economic Development, Emerald Group Publishing Limited, vol. 2(2), pages 181-194, August.
    24. Junsoo Lee & Mark C. Strazicich, 2003. "Minimum Lagrange Multiplier Unit Root Test with Two Structural Breaks," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 1082-1089, November.
    25. Lee, Chien-Chiang & Chen, Mei-Ping & Xing, Wenwu, 2022. "Do national cultures matter for tourism development? Some international evidence," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 666-686.
    26. Robin C. Sickles & William C. Horrace (ed.), 2014. "Festschrift in Honor of Peter Schmidt," Springer Books, Springer, edition 127, number 978-1-4899-8008-3, December.
    27. Katrakilidis, Constantinos & Trachanas, Emmanouil, 2012. "What drives housing price dynamics in Greece: New evidence from asymmetric ARDL cointegration," Economic Modelling, Elsevier, vol. 29(4), pages 1064-1069.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:aep:anales:4393 is not listed on IDEAS
    2. Mo Xu & Shifeng Chen & Jian Chen & Taiming Zhang, 2023. "Non-linear links between human capital, educational inequality and income inequality, evidence from China," PLOS ONE, Public Library of Science, vol. 18(8), pages 1-18, August.
    3. Kholeka Mdingi & Sin-Yu Ho, 2023. "Income inequality and economic growth: An empirical investigation in South Africa," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(2), pages 2230027-223, June.
    4. Antonis Tsitouras & Harry Papapanagos, 2026. "Factors Influencing Income Inequality and Inclusive Growth in Greece: A Long-Run and Short-Run Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(1), pages 2889-2919, February.
    5. Onur Özdemir, 2023. "The determinants of income distribution: the role of progress in human capital," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(5), pages 4193-4227, October.
    6. Jeng-Bau Lin & Chin-Chia Liang & Wei Tsai, 2019. "Nonlinear Relationships between Oil Prices and Implied Volatilities: Providing More Valuable Information," Sustainability, MDPI, vol. 11(14), pages 1-15, July.
    7. repec:ipg:wpaper:2014-082 is not listed on IDEAS
    8. Yu-Hu LIN & Wen-Yi CHEN, 2018. "On the Relationship between Business Cycle and Fertility Rate in Taiwan: Evidence from the Nonlinear Cointegration Methodology," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 140-156, December.
    9. Liang, Chin Chia & Troy, Carol & Rouyer, Ellen, 2020. "U.S. uncertainty and Asian stock prices: Evidence from the asymmetric NARDL model," The North American Journal of Economics and Finance, Elsevier, vol. 51(C).
    10. Ullah, Assad & Zhao, Xinshun & Kamal, Muhammad Abdul & Zheng, JiaJia, 2020. "Modeling the relationship between military spending and stock market development (a) symmetrically in China: An empirical analysis via the NARDL approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 554(C).
    11. Fousekis, Panos & Katrakilidis, Constantinos & Trachanas, Emmanouil, 2016. "Vertical price transmission in the US beef sector: Evidence from the nonlinear ARDL model," Economic Modelling, Elsevier, vol. 52(PB), pages 499-506.
    12. ETUDAIYE-MUHTAR Oyebola Fatima, 2024. "Financial Inclusion And Income Inequality In Nigeria," Management of Sustainable Development, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 16(1), pages 75-87, June.
    13. Apergis, Nicholas & Ewing, Bradley T. & Payne, James E., 2021. "The asymmetric relationship of oil prices and production on drilling rig trajectory," Resources Policy, Elsevier, vol. 71(C).
    14. Siew-Pong Cheah & Thian-Hee Yiew & Cheong-Fatt Ng, 2017. "A nonlinear ARDL analysis on the relation between stock price and exchange rate in Malaysia," Economics Bulletin, AccessEcon, vol. 37(1), pages 336-346.
    15. Jeffrey Kouton, 2018. "An Asymmetric Analysis of the Relationship between Openness and Inflation in C te d'Ivoire," International Journal of Economics and Financial Issues, Econjournals, vol. 8(6), pages 65-75.
    16. Ma, Dan & Chen, Hongfan & Fu, Lifu, 2024. "The impact of financial inclusion on human capital investment: Evidence from China Family Panel Studies," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1438-1451.
    17. Christl, Michael & De Poli, Silvia & Köppl-Turyna, Monika, 2025. "Does redistribution hurt growth? An empirical assessment of the redistribution–growth relationship in the European Union," Economic Modelling, Elsevier, vol. 149(C).
    18. Rafiq, Shuddhasattwa & Bloch, Harry, 2016. "Explaining commodity prices through asymmetric oil shocks: Evidence from nonlinear models," Resources Policy, Elsevier, vol. 50(C), pages 34-48.
    19. Anthony N. Rezitis, 2019. "Investigating price transmission in the Finnish dairy sector: an asymmetric NARDL approach," Empirical Economics, Springer, vol. 57(3), pages 861-900, September.
    20. Mwankemwa, Lusajo P. & Ndanshau, Michael O.A., 2021. "Asymmetric Effects of Fiscal Deficit on Monetary Policy Transmission in Tanzania," African Journal of Economic Review, African Journal of Economic Review, vol. 9(4), September.
    21. Mohamed Ali Labidi & Anis Ochi & Yosra Saidi, 2024. "Extreme Poverty, Economic Growth, and Income Inequality Trilogy in Sub-Saharan Africa and South Asia: A GMM Panel VAR Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 10592-10612, September.
    22. Falk, Martin & Lin, Xiang, 2018. "Sensitivity of winter tourism to temperature increases over the last decades," Economic Modelling, Elsevier, vol. 71(C), pages 174-183.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0301628. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.