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

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  • 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 Economic Research Papers 2010-008, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2010-008
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    1. repec:gam:jsusta:v:9:y:2017:i:12:p:2189-:d:120485 is not listed on IDEAS
    2. repec:tho:journl:v:23:y:2017:n:2:p:279-294 is not listed on IDEAS

    More about this item

    Keywords

    tourism; economic growth; sustainable development; biodiversity conservation; cross country analysis;

    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

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