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Tourism and local growth in Italy

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  • Emanuele Ciani

    (Bank of Italy)

  • Raffaello Bronzini

    (Bank of Italy)

  • Francesco Montaruli

    (Bank of Italy)

Abstract

Economic theory and the empirical literature are not conclusive on the relationship between tourism and economic growth. In this paper we estimate the impact of foreign tourists’ spending on value added per capita growth in the Italian provinces, using various econometric strategies. The overall results show that the effect is positive and statistically significant, but modest in economic terms. The impact is larger for the less developed provinces, and null for those that showed the highest tourist revenues per inhabitant at the beginning of the period, suggesting that congestion phenomena may occur.

Suggested Citation

  • Emanuele Ciani & Raffaello Bronzini & Francesco Montaruli, 2019. "Tourism and local growth in Italy," Questioni di Economia e Finanza (Occasional Papers) 509, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_509_19
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    Cited by:

    1. Roberto Balado-Naves & David Boto-García & José Francisco Baños-Pino, 2024. "A multisector growth model for testing the Tourism-Led Growth versus the Beach Disease hypotheses," Efficiency Series Papers 2024/01, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    2. Veronica Leoni & David Boto-Garc a, 2022. "The effect of natural disasters on tourism demand, supply and labour markets: Evidence from La Palma volcano eruption," Working Papers wp1177, Dipartimento Scienze Economiche, Universita' di Bologna.
    3. Andrea Porta & Josep-Maria Arauzo-Carod & Giovanna Segre, 2022. "The Italian National Strategy for Inner Areas: first insights from regions’ specialization in cultural and creative industries," Working Papers - Business wp2022_04.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.

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    More about this item

    Keywords

    tourism; economic growth; tourism expenditure; beach disease; dynamic panel data; instrumental variables;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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