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Does tourism influence economic growth? A dynamic panel data approach

  • Tiago Neves Sequeira
  • Paulo Macas Nunes

On average, tourism-specialized countries grow more than others. This is not consistent with the core of modern economic growth theory that suggests that economic growth is linked to sectors with high-tech intensity and large scale. In this article, we use appropriate panel data methods to study the relationship between tourism and economic growth. In general, we show that tourism is a positive determinant of economic growth both in a broad sample of countries and in a sample of poor countries. However, contrary to previous contributions, tourism is not more relevant in small countries than in a general sample.

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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 40 (2008)
Issue (Month): 18 ()
Pages: 2431-2441

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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2431-2441
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