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Towards the quest to reduce income inequality in Africa: is there a synergy between tourism development and governance?

Author

Listed:
  • Isaac Kwesi Ofori
  • Toyo Amègnonna Marcel Dossou
  • Seyi Saint Akadiri

Abstract

Despite the growing attention on the tourism development-income inequality nexus, a conspicuous gap in the literature is that rigorous empirical works examining how good governance moderates the relationship are hard to find. Anchoring on the trickle-down theory and the tourism-led growth hypothesis, this study fills this void in the literature based on data for 48 African countries for the period 1996–2020. We provide strong evidence robust to several specifications from the GMM estimator to show that, though unconditionally both tourism development and governance reduce income inequality in Africa, the effect of the former is amplified in the presence of good economic, political and institutional governance. Particularly, we find that control of corruption and political stability are keys for propelling Africa’s tourism sector to contribute to the equalization of incomes across the continent. Policy recommendations are provided in line with SDG 10, and Aspirations 1 and 3 of Africa’s Agenda 2063.

Suggested Citation

  • Isaac Kwesi Ofori & Toyo Amègnonna Marcel Dossou & Seyi Saint Akadiri, 2023. "Towards the quest to reduce income inequality in Africa: is there a synergy between tourism development and governance?," Current Issues in Tourism, Taylor & Francis Journals, vol. 26(3), pages 429-449, February.
    • Handle: RePEc:taf:rcitxx:v:26:y:2023:i:3:p:429-449
    DOI: 10.1080/13683500.2021.2021157
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    Cited by:

    1. Dossou, Toyo Amègnonna Marcel & Ndomandji Kambaye, Emmanuelle & Asongu, Simplice A. & Alinsato, Alastaire Sèna & Berhe, Mesfin Welderufael & Dossou, Kouessi Pascal, 2023. "Foreign direct investment and renewable energy development in sub-saharan Africa: Does governance quality matter?," Renewable Energy, Elsevier, vol. 219(P1).
    2. Charles S. Saba & Simplice A. Asongu & Nicholas Ngepah & Yolande E. Ngoungou, 2023. "Governance in the exploration of global and regional determinants of ICT development," Working Papers of the African Governance and Development Institute. 23/040, African Governance and Development Institute..
    3. Samba Diop & Simplice A. Asongu & Vanessa S. Tchamyou, 2021. "Mitigating the Macroeconomic Impact of Severe Natural Disasters in Africa: Policy Synergies," Research Africa Network Working Papers 21/094, Research Africa Network (RAN).
    4. Nchofoung, Tii N. & Asongu, Simplice A., 2022. "ICT for sustainable development: Global comparative evidence of globalisation thresholds," Telecommunications Policy, Elsevier, vol. 46(5).
    5. Simplice A. Asongu & Mushfiqur Rahman & Joseph Nnanna, 2023. "Law, political stability, tourism management and economic development in sub-Saharan Africa," Current Issues in Tourism, Taylor & Francis Journals, vol. 26(16), pages 2678-2691, August.
    6. Toyo Amègnonna Marcel Dossou, 2023. "Income Inequality in Africa: Exploring the Interaction Between Urbanization and Governance Quality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 167(1), pages 421-450, June.
    7. Xuanming Pan & Toyo Amègnonna Marcel Dossou & Mesfin Welderufael Berhe & Emmanuelle Ndomandji Kambaye, 2023. "Towards efforts to promote renewable energy development in Africa: Does governance quality matter?," Energy & Environment, , vol. 34(8), pages 3039-3054, December.
    8. Tolulope Osinubi & Munacinga Simatele, 2025. "Informal economy, institutional quality, and socioeconomic conditions in African countries," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 17(1), pages 95-109.
    9. Toyo A. M. Dossou & Dossou K. Pascal & Emmanuelle N. Kambaye & Simplice A. Asongu & Alastaire S. Alinsato, 2024. "The Financial development-renewable energy consumption nexus in Africa: Does governance quality matter?," Journal of Africa SEER Centre(ASC) 24/011, Africa SEER Centre(ASC).
    10. Alastaire S. Alinsato & Toyo Amègnonna Marcel Dossou & Pascal K. Dossou & Emmanuelle N. Kambaye & Simplice A. Asongu, 2025. "The financial development and renewable energy consumption nexus in Africa: Does the quality of governance matter?," Natural Resources Forum, Blackwell Publishing, vol. 49(3), pages 2845-2868, August.
    11. Fubiao Zhu & Xiaona Cao & Delin Zhuang & Shengwu Jin & Xueting Yang, 2024. "Effects of tourism on socio‐economic well‐being and its inter‐regional convergence: Evidence from China's 291 cities," Growth and Change, Wiley Blackwell, vol. 55(3), September.
    12. Muhammad Zaheer Akhtar & Khalid Zaman & Muhammad Azhar Khan, 2024. "Tourism triumphs: unraveling the essence of Asia’s allure through governance, FDI, and natural bounties," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 14(2), pages 269-286, June.
    13. Thierry Messie Pondie & Fabrice Ewolo Bitoto, 2025. "Africa’s paradox: unleashing tourism potential through resource endowment," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 38(2), pages 377-396, June.

    More about this item

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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