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The impact of tourism growth on income inequality: Evidence from developing and developed economies

Author

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  • Jianchun Fang

    (Zhejiang University of Technology, China; Zhejiang University, China; Chinese Academy of Social Sciences, China)

  • Giray Gozgor

    (Istanbul Medeniyet University, Turkey)

  • Sudharshan Reddy Paramati

    (University of Dundee, UK)

  • Wanshan Wu

    (Zhejiang University of Technology, China; Zhejiang University, China)

Abstract

In this article, we investigate the effects of tourism indicators on income inequality (IIE) in a sample of 102 countries. We divide the sample countries into 71 developing and 31 advanced economies. Using annual data from 1995 to 2014, we employ panel unit root tests, cointegration, fixed-effects, fully modified ordinary least squares, and causality techniques. Our findings show that tourism indicators have a significant negative impact on IIE in developing economies, while they have an insignificant impact in developed economies. Conversely, economic globalization increases IIE in developing economies, whereas its effect is positive but statistically insignificant in developed countries. From these findings, the study outlines detailed policy and practical implications.

Suggested Citation

  • Jianchun Fang & Giray Gozgor & Sudharshan Reddy Paramati & Wanshan Wu, 2021. "The impact of tourism growth on income inequality: Evidence from developing and developed economies," Tourism Economics, , vol. 27(8), pages 1669-1691, December.
    • Handle: RePEc:sae:toueco:v:27:y:2021:i:8:p:1669-1691
    DOI: 10.1177/1354816620934908
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    Citations

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    Cited by:

    1. Xiaohua Chen & Xinyi Zhang & Yuhua Song & Xueping Liang & Liangjun Wang & Yina Geng, 2020. "Fiscal Decentralization, Urban-Rural Income Gap, and Tourism," Sustainability, MDPI, vol. 12(24), pages 1-14, December.
    2. Zhixin Zeng & Xiaojun Wang, 2021. "Effects of Domestic Tourism on Urban-Rural Income Inequality: Evidence from China," Sustainability, MDPI, vol. 13(16), pages 1-21, August.
    3. Zhixin Zeng & Xiaojun Wang, 2021. "Spatial Effects of Domestic Tourism on Urban-Rural Income Inequality," Sustainability, MDPI, vol. 13(16), pages 1-17, August.
    4. Aleksandra Kuzior & Oleksii Lyulyov & Tetyana Pimonenko & Aleksy Kwilinski & Dariusz Krawczyk, 2021. "Post-Industrial Tourism as a Driver of Sustainable Development," Sustainability, MDPI, vol. 13(15), pages 1-14, July.
    5. Daniela Castilho & José Alberto Fuinhas, 2025. "Exploring the effects of tourism capital investment on income inequality and poverty in the European Union countries," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 14(1), pages 1-24, December.
    6. Chenghong Xu & Mingming Han & Toyo Amegnonna Marcel Dossou & Festus Victor Bekun, 2021. "Trade openness, FDI, and income inequality: Evidence from sub‐Saharan Africa," African Development Review, African Development Bank, vol. 33(1), pages 193-203, March.
    7. Alexandre Veilleux & Bruno Sarrasin, 2025. "Quality Tourism in Thailand: Towards Sustainable Tourism or Further Wealth Concentration?," Tourism and Hospitality, MDPI, vol. 6(1), pages 1-19, February.

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