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Determinants of Tourism Development: Empirical Evidence from Three Developing Countries

Author

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  • Nyasha, Sheilla

    (Department of Economics, University of South Africa, Pretoria, South Africa)

  • Odhiambo, Nicholas M.

    (Department of Economics, University of South Africa, Pretoria, South Africa)

Abstract

This study examines the key determinants of tourism development in South Africa, Brazil and Vietnam during the period 1995- 2018. Despite the growing empirical literature on the determinants of tourism development from a number of countries, these countries have remained understudied. The study uses two proxies, namely: tourism revenue (TR) and the number of international tourist arrivals (TA), to measure the level of tourism development. Using the ARDL bounds-testing approach, the results show that the determinants of tourism development differ from country to country and over time. In addition, the study shows that the determinants depend on the proxy used to measure the level of tourism development. Overall, the study found that the positive drivers of tourism in these countries are tourist disposable income, financial development, trade openness and political stability, while the negative drivers include exchange rate, price level and carbon emissions. Le determinanti dello sviluppo del turismo: evidenze empiriche da tre paesi in via di sviluppo In questo articolo sono state esaminate le determinanti chiave per lo sviluppo del turismo in tre paesi – Sud Africa, Brasile e Vietnam – nel periodo 1995-2018. Nonostante vi sia un crescente interesse della letteratura empirica nelle determinanti dello sviluppo del turismo questi tre paesi non erano ancora stati oggetto di studio. L’articolo utilizza due variabili per misurare il livello di sviluppo del turismo, precisamente: le rimesse del turismo (TR) e il numero di arrivi turistici internazionali (TA). I risultati ottenuti attraverso l’approccio ARDL bound-testing hanno dimostrato che le determinanti dello sviluppo del turismo differiscono da paese a paese e a livello temporale. Inoltre è dimostrato che tali determinanti dipendono dalla variabile applicata per misurare il livello di sviluppo del turismo. Soprattutto questo articolo ha riscontrato che i fattori positivi per il turismo in questi paesi sono le disponibilità economiche dei turisti, lo sviluppo finanziario, l’apertura commerciale e la stabilità politica, mentre il tasso di cambio, il livello dei prezzi e le emissioni inquinanti sono fattori negativi.

Suggested Citation

  • Nyasha, Sheilla & Odhiambo, Nicholas M., 2021. "Determinants of Tourism Development: Empirical Evidence from Three Developing Countries," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 74(3), pages 335-368.
    • Handle: RePEc:ris:ecoint:0903
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    1. S. Nyasha & N.M. Odhiambo, 2022. "Energy consumption and economic growth in Zambia: A disaggregated approach," Journal of Economic Policy and Management Issues, JEPMI, vol. 1(1), pages 1-11.

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    More about this item

    Keywords

    Tourism Development; Determinants; South Africa; Brazil; Vietnam; ARDL;
    All these keywords.

    JEL classification:

    • Z30 - Other Special Topics - - Tourism Economics - - - General
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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