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Towards The Quest To Reduce Income Inequality In Africa: Is There A Synergy Between Tourism Development And Governance?

Author

Listed:
  • Ofori, Isaac K.
  • Dossou, Toyo A. M.
  • Akadiri, Seyi S.

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 is 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 quality economic, political and institutional governance. Particularly, we find that control of corruption and political are keys for propelling Africa’s tourism sector contribute to policymakers’ quest of fostering shared prosperity in the continent. Policy recommendations are provided in line with SDG 10 and Aspiration 1 and 3 of Africa’s Agenda 2063.

Suggested Citation

  • Ofori, Isaac K. & Dossou, Toyo A. M. & Akadiri, Seyi S., 2021. "Towards The Quest To Reduce Income Inequality In Africa: Is There A Synergy Between Tourism Development And Governance?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue forthcomi.
    • Handle: RePEc:zbw:espost:247710
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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. 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.
    8. 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).
    9. 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.
    10. 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.
    11. 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.
    12. 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.

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    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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