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The Impact of Tourism Development on Economic Growth in Sub-Saharan Africa

Author

Listed:
  • Sheilla Nyasha

    (UNISA, Pretoria, South Africa)

  • Nicholas M. Odhiambo

    (UNISA, Pretoria, South Africa)

  • Simplice A. Asongu

    (Yaoundé, Cameroon)

Abstract

This study examines the dynamic impact of tourism development on economic growth in sub-Saharan Africa (SSA) using the Generalised Method of Moments and data covering the period from 2002 to 2018. The increasingly important role of tourism and the limelight the tourism sector has been enjoying of late, on the one hand, and the lack of sufficient coverage of tourism-growth nexus studies in Africa in general and in SSA in particular, motivated this study. Unlike most of the known panel data-based studies on tourism development and economic growth, this study has split the sub-Saharan African countries into low-income and middle-income sub-Saharan African countries. The results of the study show that tourism expenditure negatively affects economic growth while tourism receipts have the opposite effect in SSA. The findings are robust to the low-income sub-sample while only the effect of tourism expenditure is robust in the middle-income sub-sample.

Suggested Citation

  • Sheilla Nyasha & Nicholas M. Odhiambo & Simplice A. Asongu, 2020. "The Impact of Tourism Development on Economic Growth in Sub-Saharan Africa," Working Papers 20/044, European Xtramile Centre of African Studies (EXCAS).
  • Handle: RePEc:exs:wpaper:20/044
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    Cited by:

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    3. Nicholas M. Odhiambo & Talknice Saungweme, "undated". "Does International Tourism Spur International Trade In Ssa Countries? A Dynamic Panel Data Analysis," Working Papers AESRI07, African Economic and Social Research Institute (AESRI).
    4. Sheilla Nyasha & Nicholas M. Odhiambo & Mercy T. Musakwa, 2021. "The Impact of Stock Market Development on Unemployment: Empirical Evidence from South Africa," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 71(1-2), pages 92-110, January-J.
    5. Simplice Asongu & Nicholas M. Odhiambo, 2023. "Health performance and economic growth in sub-Saharan Africa: new evidence based on quantile regressions," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 50(12), pages 1655-1671, May.
    6. GUISAN, Maria-Carmen & EXPOSITO, Pilar, 2021. "Industry, Education, Development And Quality Of Life In African Countries, 1995-2020," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 21(2), pages 53-76.
    7. Tii N. Nchofoung & Simplice A. Asongu & Vanessa S. Tchamyou, 2022. "Tourism, ICT and inclusive development: global evidence," Working Papers 22/037, European Xtramile Centre of African Studies (EXCAS).
    8. Musakwa, Mercy T & Odhiambo, Nicholas M, 2022. "Does tourism influence financial development in Kenya?," Working Papers 29228, University of South Africa, Department of Economics.
    9. Sheilla Nyasha & Nicholas M. Odhiambo & Mercy T. Musakwa, 2021. "The Impact of Stock Market Development on Unemployment: Empirical Evidence from South Africa," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 71(1-2), pages 92-110, January-J.
    10. Nicholas M Odhiambo, 2021. "Tourism Development and Poverty Alleviation in Sub-Saharan African Countries: An Empirical Investigation," Working Papers AERI0921, African Economic and Social Research Institute (AESRI).
    11. S. Nyasha & N.M. Odhiambo & M.T. Musakwa, 2021. "The Impact of Stock Market Development on Unemployment: Empirical Evidence from South Africa," Working Papers AESRI-2021-17, African Economic and Social Research Institute (AESRI), revised Jul 2021.
    12. Nicholas M. Odhiambo, "undated". "Tourism Development And Poverty Alleviation In Sub-Saharan African Countries: An Empirical Investigation," Working Papers AESRI09, African Economic and Social Research Institute (AESRI).
    13. Mercy T. Musakwa & Nicholas M Odhiambo, "undated". "Does Tourism Influence Financial Development In Kenya," Working Papers AESRIWP15, African Economic and Social Research Institute (AESRI).
    14. Francis Baidoo & Elikplimi Komla Agbloyor & Vera Ogeh Lassey Fiador & Nana Amaniampong Marfo, 2022. "Do countries’ geographical locations moderate the tourism-led economic growth nexus in sub-Saharan Africa?," Tourism Economics, , vol. 28(4), pages 1009-1039, June.
    15. Nicholas M. Odhiambo & Talknice Saungweme, "undated". "Does International Tourism Spur International Trade in SSA Countries? A Dynamic Panel Data Analysis," Working Papers AESRIWP08, African Economic and Social Research Institute (AESRI).
    16. N.M. Odhiambo & T. Saungweme, 2021. "Does International Tourism Spur International Trade in SSA Countries? A Dynamic Panel Data Analysis," Working Papers AESRI-2021-08, African Economic and Social Research Institute (AESRI), revised Nov 2021.
    17. MT Musakwa & N.M. Odhiambo, 2022. "Does Tourism Influence Financial Development in Kenya?," Working Papers AESRI-2022-15, African Economic and Social Research Institute (AESRI), revised Jun 2022.
    18. Odhiambo, Nicholas M & Saungweme, Talknice, 2021. "Does international tourism spur international trade in SSA countries? A dynamic panel data analysis," Working Papers 28345, University of South Africa, Department of Economics.
    19. Uktam Umurzakov & Shakhnoza Tosheva & Raufhon Salahodjaev, 2023. "Tourism and Sustainable Economic Development: Evidence from Belt and Road Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 503-516, March.
    20. Kaitano Dube, 2024. "El Niño’s Implications for the Victoria Falls Resort and Tourism Economy in the Era of Climate Change," Sustainability, MDPI, vol. 16(12), pages 1-15, June.

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    More about this item

    Keywords

    Tourism Development; Economic Growth; Sub-Saharan Africa; SSA; Middle Income Countries; Low Income Countries; Generalised Method of Moments; GMM;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Z3 - Other Special Topics - - Tourism Economics
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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