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Tourism Inter-Industry Linkages in the Lao PDR Economy: An Input—Output Analysis


  • Bhoj Raj Khanal

    (Department of Economics and Finance, Faculty of Commerce, Lincoln University, New Zealand, and Lutheran World Federation Nepal, PO Box 3330, Maharajgunj, Kathmandu, Nepal)

  • Christopher Gan

    (Department of Economics and Finance, Faculty of Commerce, PO Box 85084, Lincoln University, Lincoln 7647, Canterbury, New Zealand)

  • Susanne Becken

    (Griffith Business School, Griffith University, Australia, and Faculty of Environment, Society and Design, Lincoln University, New Zealand)


This paper studies the significance of economic linkages between the Lao PDR tourism sector and the rest of the economy. An international visitors' expenditure survey and input–output models were used to disaggregate tourism economic data from the economy. A series of approaches was then employed to construct inter-industry linkage measures. The results reveal a rising trend in tourism's linkages with the country's economy from 2003 to 2008, indicating an increase in the tourism sector's dependency on the rest of the economy. The key sectors are food and beverages, manufacturing, wholesale and retail trade, agriculture and livestock, and tourism – these sectors dominated the economy during 2003–2008. The results provide evidence that the Lao PDR tourism sector is a key sector in enhancing economic growth and enabling the country to be one of the fastest growing economies in the Greater Mekong Subregion.

Suggested Citation

  • Bhoj Raj Khanal & Christopher Gan & Susanne Becken, 2014. "Tourism Inter-Industry Linkages in the Lao PDR Economy: An Input—Output Analysis," Tourism Economics, , vol. 20(1), pages 171-194, February.
  • Handle: RePEc:sae:toueco:v:20:y:2014:i:1:p:171-194
    DOI: 10.5367/te.2013.0255

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    References listed on IDEAS

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    5. Malcolm Beynon & Calvin Jones & Max Munday, 2009. "The Embeddedness of Tourism-related Activity: A Regional Analysis of Sectoral Linkages," Urban Studies, Urban Studies Journal Limited, vol. 46(10), pages 2123-2141, September.
    6. Nganou, Jean-Pascal & Parra, Juan Carlos & Wodon, Quentin, 2009. "Oil price shocks, poverty, and gender: a social accouting matrix analysis for Kenya," MPRA Paper 28471, University Library of Munich, Germany.
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    Cited by:

    1. Andrés Artal-Tur & José Miguel Navarro-Azorín & José María Ramos-Parreño, 2020. "Measuring the economic contribution of tourism to destinations within an input-output framework: some methodological issues," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 19(3), pages 243-265, September.
    2. Pedro Pintassilgo & Jaume Rosselló & Maria Santana-Gallego & Elisabeth Valle, 2016. "The economic dimension of climate change impacts on tourism," Tourism Economics, , vol. 22(4), pages 685-698, August.


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