IDEAS home Printed from https://ideas.repec.org/p/jrp/jrpwrp/2010-008.html
   My bibliography  Save this paper

Can nature promote development? The role of sustainable tourism for economic growth

Author

Listed:
  • Andreas Freytag

    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Christoph Vietze

    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

Abstract

We analyze whether biodiversity is enhancing the development process in developing countries (DCs) via increasing tourism receipts in a trade based endogenous growth framework. The underlying assumption is that a rich biodiversity - only if used sustainably - provides a comparative advantage in tourism for most DCs. The main empirical findings are that biodiversity while being significantly and positively correlated with inbound tourism receipts in DCs, has no significant relation with tourist arrivals. This can be interpreted as an indicator that mass tourism is not influenced by biodiversity whereas individual tourism (as the superior good) is. Consequently, we are able to show empirical a positive influence of sustainable tourism on economic growth. Therefore, it may be a promising development strategy to invest in biodiversity and attract high budget tourists.

Suggested Citation

  • Andreas Freytag & Christoph Vietze, 2010. "Can nature promote development? The role of sustainable tourism for economic growth," Jena Economics Research Papers 2010-008, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2010-008
    as

    Download full text from publisher

    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2010/wp_2010_008.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Valente, Simone, 2005. "Growth, Conventional Production and Tourism Specialisation: Technological Catching-up Versus Terms-of-Trade Effects," Natural Resources Management Working Papers 12139, Fondazione Eni Enrico Mattei (FEEM).
    2. Brander, James A. & Scott Taylor, M., 1998. "Open access renewable resources: Trade and trade policy in a two-country model," Journal of International Economics, Elsevier, vol. 44(2), pages 181-209, April.
    3. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808.
    4. John M. Piotrowski & Mr. Rabah Arezki & Reda Cherif, 2009. "Tourism Specialization and Economic Development: Evidence from the UNESCO World Heritage List," IMF Working Papers 2009/176, International Monetary Fund.
    5. Andreas Freytag & C. Vietze & W. Völkl, 2011. "What Drives Biodiversity? An Empirical Assessment of the Relation between Biodiversity and the Economy," Jena Economics Research Papers 2009-025, Friedrich-Schiller-University Jena.
    6. Nijkamp, Peter, 1998. "Tourism, marketing and telecommuniction: a road towards regional development," Serie Research Memoranda 0028, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    7. Andrea Bigano & Jacqueline M. Hamilton & Richard S.J. Tol, 2004. "The Impact Of Climate On Holiday Destination Choice," Working Papers FNU-55, Research unit Sustainability and Global Change, Hamburg University, revised Oct 2004.
    8. Smulders, Sjak & van Soest, Daan & Withagen, Cees, 2004. "International trade, species diversity, and habitat conservation," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 891-910, September.
    9. Rögnvaldur Hannesson, 2000. "Renewable resources and the gains from trade," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 33(1), pages 122-132, February.
    10. Francisco Alcalá & Antonio Ciccone, 2004. "Trade and Productivity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(2), pages 613-646.
    11. Naidoo, Robin & Adamowicz, Wiktor L., 2005. "Biodiversity and nature-based tourism at forest reserves in Uganda," Environment and Development Economics, Cambridge University Press, vol. 10(2), pages 159-178, May.
    12. Rögnvaldur Hannesson, 2000. "Renewable resources and the gains from trade," Canadian Journal of Economics, Canadian Economics Association, vol. 33(1), pages 122-132, February.
    13. Enrico Moretti, 2004. "Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions," American Economic Review, American Economic Association, vol. 94(3), pages 656-690, June.
    14. Francesco Pigliaru & Alessandro Lanza, 2003. "How fast are the tourism countries growing? The international evidence, 1980-95," ERSA conference papers ersa03p234, European Regional Science Association.
    15. Rinaldo Brau & Alessandro Lanza & Francesco Pigliaru, 2003. "How Fast are the Tourism Countries Growing? The cross-country evidence," Working Papers 2003.85, Fondazione Eni Enrico Mattei.
    16. Andreas Freytag & Christoph Vietze, 2007. "Biodiversity, International Tourism and development," Jena Economics Research Papers 2007-012, Friedrich-Schiller-University Jena.
    17. World Bank, 2007. "World Development Indicators 2007," World Bank Publications - Books, The World Bank Group, number 8150.
    18. John Asafu‐Adjaye, 2003. "Biodiversity Loss and Economic Growth: A Cross‐Country Analysis," Contemporary Economic Policy, Western Economic Association International, vol. 21(2), pages 173-185, April.
    19. Salvo Creaco & Giulio Querini, 2003. "The role of tourism in sustainable economic development," ERSA conference papers ersa03p84, European Regional Science Association.
    20. M. Thea Sinclair, 1998. "Tourism and economic development: A survey," Journal of Development Studies, Taylor & Francis Journals, vol. 34(5), pages 1-51.
    21. James A. Brander & M. Scott Taylor, 1997. "International Trade and Open-Access Renewable Resources: The Small Open Economy Case," Canadian Journal of Economics, Canadian Economics Association, vol. 30(3), pages 526-552, August.
    22. Kay Muir-Leresche & Robert H. Nelson, 2000. "Private Property Rights to Wildlife: The Southern African Experiment," ICER Working Papers 02-2000, ICER - International Centre for Economic Research.
    23. J. H. Lawton & D. E. Bignell & B. Bolton & G. F. Bloemers & P. Eggleton & P. M. Hammond & M. Hodda & R. D. Holt & T. B. Larsen & N. A. Mawdsley & N. E. Stork & D. S. Srivastava & A. D. Watt, 1998. "Biodiversity inventories, indicator taxa and effects of habitat modification in tropical forest," Nature, Nature, vol. 391(6662), pages 72-76, January.
    24. Andrew Metrick & Martin L. Weitzman, 1998. "Conflicts and Choices in Biodiversity Preservation," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 21-34, Summer.
    25. World Bank, 2005. "World Development Indicators 2005," World Bank Publications - Books, The World Bank Group, number 12426.
    26. Chang-Tai Hsieh & Peter J. Klenow, 2007. "Relative Prices and Relative Prosperity," American Economic Review, American Economic Association, vol. 97(3), pages 562-585, June.
    27. 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.
    28. Barbier, Edward B. & Bulte, Erwin H., 2004. "Introduction to the symposium on trade, renewable resources and biodiversity," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 883-890, September.
    29. repec:wbk:wbpubs:12425 is not listed on IDEAS
    30. Juan Luis Eugenio-Martín & Noelia Martín Morales & Riccardo Scarpa, 2004. "Tourism and Economic Growth in Latin American Countries: A Panel Data Approach," Working Papers 2004.26, Fondazione Eni Enrico Mattei.
    31. Yair Eilat & Liran Einav, 2004. "Determinants of international tourism: a three-dimensional panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 36(12), pages 1315-1327.
    32. McAusland, Carol & Costello, Christopher, 2004. "Avoiding invasives: trade-related policies for controlling unintentional exotic species introductions," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 954-977, September.
    33. Christoph Vietze, 2011. "What's Pushing International Tourism Expenditures?," Tourism Economics, , vol. 17(2), pages 237-260, April.
    34. R. Rawls & David Laband, 2004. "A Public Choice Analysis of Endangered Species Listings," Public Choice, Springer, vol. 121(3), pages 263-277, December.
    35. Polasky, Stephen & Costello, Christopher & McAusland, Carol, 2004. "On trade, land-use, and biodiversity," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 911-925, September.
    36. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christoph Vietze, 2012. "Cultural Effects on Inbound Tourism into the USA: A Gravity Approach," Tourism Economics, , vol. 18(1), pages 121-138, February.
    2. Ilham Junaid & Anne-Marie d’Hauteserre, 2017. "Collaborative schemes for anticipating negative impacts of the tourists' visit," Tourism and Hospitality Management, University of Rijeka, Faculty of Tourism and Hospitality Management, vol. 23(2), pages 279-294, November.
    3. Dong Lu & Yide Liu & Ivan Lai & Li Yang, 2017. "Awe: An Important Emotional Experience in Sustainable Tourism," Sustainability, MDPI, vol. 9(12), pages 1-15, November.
    4. Darboe, sarjo, 2024. "The Dynamic Impact of biodiversity on Tourism: empirical evidence from Gambia," MPRA Paper 120063, University Library of Munich, Germany.
    5. Yang, Yang & Xue, Lan & Jones, Thomas E., 2019. "Tourism-enhancing effect of World Heritage Sites: Panacea or placebo? A meta-analysis," Annals of Tourism Research, Elsevier, vol. 75(C), pages 29-41.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barbier, Edward B. & Bulte, Erwin H., 2004. "Introduction to the symposium on trade, renewable resources and biodiversity," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 883-890, September.
    2. Christoph Vietze, 2011. "What's Pushing International Tourism Expenditures?," Tourism Economics, , vol. 17(2), pages 237-260, April.
    3. Edwards, Eric C. & Go, Dong-Hun & Oladi, Reza, 2020. "Predator–prey dynamics in general equilibrium and the role of trade," Resource and Energy Economics, Elsevier, vol. 61(C).
    4. Dube, Isha & Quaas, Martin, 2024. "Love of variety and the welfare effects of trade in renewable resources," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    5. Sabau, Gabriela & Boksh, F.I.M. Muktadir, 2017. "Fish Trade Liberalization Under 21st Century Trade Agreements: The CETA and Newfoundland and Labrador Fish and Seafood Industry," Ecological Economics, Elsevier, vol. 141(C), pages 222-233.
    6. Elena Bellini & Ugo Gasparino & Barbara Del Corpo & William Malizia, 2007. "Impact of Cultural Tourism upon Urban Economies: An Econometric Exercise," Working Papers 2007.85, Fondazione Eni Enrico Mattei.
    7. Gars, Johan & Spiro, Daniel, 2014. "Uninsurance through Trade," Memorandum 13/2014, Oslo University, Department of Economics.
    8. Gasparino, Ugo & Bellini, Elena & del Corpo, Barbara & Malizia, William, 2008. "Measuring the Impact of Tourism Upon Urban Economies: A Review of Literature," Knowledge, Technology, Human Capital Working Papers 37846, Fondazione Eni Enrico Mattei (FEEM).
    9. Horatiu A. Rus, 2016. "Renewable Resources, Pollution and Trade," Review of International Economics, Wiley Blackwell, vol. 24(2), pages 364-391, May.
    10. Horatiu A. Rus, 2006. "Renewable Resources, Pollution and Trade in a Small Open Economy," Working Papers 2006.140, Fondazione Eni Enrico Mattei.
    11. Eichner, Thomas & Pethig, Rüdiger, 2016. "Coaseian biodiversity conservation. Who benefits?," VfS Annual Conference 2016 (Augsburg): Demographic Change 145745, Verein für Socialpolitik / German Economic Association.
    12. Erwin Bulte & Richard Damania, 2005. "A note on trade liberalization and common pool resources," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 883-899, August.
    13. Rinaldo Brau & A. Lanza & F. Pigliaru, 2006. "How fast are small tourist countries growing? The 1980-2003 evidence," Working Paper CRENoS 200614, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    14. Eisenbarth, Sabrina, 2022. "Do exports of renewable resources lead to resource depletion? Evidence from fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 112(C).
    15. Colin Cannonier & Monica Galloway Burke, 2019. "The economic growth impact of tourism in Small Island Developing States—evidence from the Caribbean," Tourism Economics, , vol. 25(1), pages 85-108, February.
    16. Benchekroun, Hassan & Ray Chaudhuri, Amrita & Tasneem, Dina, 2020. "On the impact of trade in a common property renewable resource oligopoly," Journal of Environmental Economics and Management, Elsevier, vol. 101(C).
    17. Angela Münch, 2010. "Agri-Environmental Schemes and Grassland Biodiversity: Another Side of the Coin," Jena Economics Research Papers 2010-026, Friedrich-Schiller-University Jena.
    18. Bergeron, Nancy, 2002. "International Trade and Conservation with Costly Natural Resource Management," Cahiers de recherche 0204, GREEN.
    19. Barbier,Edward B., 2007. "Natural Resources and Economic Development," Cambridge Books, Cambridge University Press, number 9780521706513.
    20. Bichaka Fayissa & Christian Nsiah & Badassa Tadasse, 2008. "Impact of Tourism on Economic Growth and Development in Africa," Tourism Economics, , vol. 14(4), pages 807-818, December.

    More about this item

    Keywords

    tourism; economic growth; sustainable development; biodiversity conservation; cross country analysis;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jrp:jrpwrp:2010-008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Markus Pasche (email available below). General contact details of provider: http://www.jenecon.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.