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How fast are small tourist countries growing? The 1980-2003 evidence

  • R. Brau


  • A. Lanza


  • F. Pigliaru


We analyze the empirical relationship between growth, country size and tourism specialization by using a dataset covering the period 1980-2003. We find that tourism countries grow significantly faster than all the other sub-groups considered in our analysis. Tourism appears to be an independent determining factor for growth, and the reason for that is neither because they are poorer than the average, nor because they are very open to trade. Another finding of our paper is that small states are fast growing only when are highly specialized in tourism. In contrast with some previous conclusions in the literature, smallness per se is not good for growth.

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Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200614.

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Date of creation: 2006
Date of revision:
Handle: RePEc:cns:cnscwp:200614
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  1. repec:lan:wpaper:899 is not listed on IDEAS
  2. H W Armstrong & R Read, . "Trade and Growth in Small States: The Impact of Global Trade Liberalisation," Working Papers ec5/98, Department of Economics, University of Lancaster.
  3. Feenstra, R.C., 1990. "Trade And Uneven Growth," Papers 353, California Davis - Institute of Governmental Affairs.
  4. repec:tpr:qjecon:v:107:y:1992:i:2:p:407-37 is not listed on IDEAS
  5. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  6. A. Lanza & F. Pigliaru, 1999. "Why Are Tourism Countries Small and Fast-Growing?," Working Paper CRENoS 199906, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  7. Briguglio, Lino, 1995. "Small island developing states and their economic vulnerabilities," World Development, Elsevier, vol. 23(9), pages 1615-1632, September.
  8. Armstrong, H. & De Kervenoael, R. J. & Li, X. & Read, R., 1998. "A comparison of the economic performance of different micro-states, and between micro-states and larger countries," World Development, Elsevier, vol. 26(4), pages 639-656, April.
  9. Read, Robert, 2004. "The Implications of Increasing Globalization and Regionalism for the Economic Growth of Small Island States," World Development, Elsevier, vol. 32(2), pages 365-378, February.
  10. repec:lan:wpaper:898 is not listed on IDEAS
  11. Armstrong, Harvey & Read, Robert, 1995. "Western European micro-states and EU autonomous regions: The advantages of size and sovereignty," World Development, Elsevier, vol. 23(7), pages 1229-1245, July.
  12. Armstrong, H W & Read, R, 2000. "Comparing the Economic Performance of Dependent Territories and Sovereign Microstates," Economic Development and Cultural Change, University of Chicago Press, vol. 48(2), pages 285-306, January.
  13. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  14. Simone Valente, 2005. "Growth, Conventional Production and Tourism Specialisation: Technological Catching-up Versus Terms-of-Trade Effects," Working Papers 2005.140, Fondazione Eni Enrico Mattei.
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