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Impacts of tourism and fiscal expenditure on remote islands in Japan: a panel data analysis

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Listed:
  • Noriko Ishikawa
  • Mototsugu Fukushige

Abstract

Japan consists of many small inhabited islands in addition to four main islands. We examine the impact of fiscal expenditure and the number of tourists on per capita taxable income in remote islands using panel data analyses. The results show that both fiscal expenditure and population size have significant positive impacts on per capita taxable income, whereas the number of tourists does not have statistically significant impact. They indicate that tourism development would not work as a substitute for financial support from the government. In other words, continuous financial support may be needed to maintain the islands' economies.

Suggested Citation

  • Noriko Ishikawa & Mototsugu Fukushige, 2009. "Impacts of tourism and fiscal expenditure on remote islands in Japan: a panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 41(7), pages 921-928.
    • Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:921-928
    DOI: 10.1080/00036840801964484
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    JEL classification:

    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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