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The Impact of Tourism on Economic Growth and Development in Africa

  • Bichaka Fayissa
  • Christian Nsiah
  • Badassa Tadasse

Over the decade of the 1990s, Africa has experienced a rise in tourist arrivals from 8.4 million to 10.6 million and receipts growth from $2.3 billion to $3.7 billion, respectively. According to the World Tourism Organization (WTO, 2006), the tourism industry in Sub-Saharan Africa enjoyed a robust annual market share growth rate of 10 percent in 2006. In spite of this, there are only few empirical studies that investigate the contributions of tourism to economic growth and development for African economies. Using a panel data of 42 African countries for the years that span from 1995 to 2004, this study explores the potential contribution of tourism to economic growth and development within the conventional neoclassical framework. The results show that receipts from the tourism industry significantly contribute both to the current level of gross domestic product and the economic growth of Sub-Saharan African countries as do investments in physical and human capital. Our findings imply that African economies could enhance their short-run economic growth by strategically strengthening their tourism industries.

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File URL: http://capone.mtsu.edu/berc/working/TourismAfricawp.pdf
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Paper provided by Middle Tennessee State University, Department of Economics and Finance in its series Working Papers with number 200716.

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Date of creation: Aug 2007
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Handle: RePEc:mts:wpaper:200716
Contact details of provider: Web page: http://www.mtsu.edu/~berc/working/Economics_Working_Papers.htmlEmail:


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  8. Gustav Ranis, 2004. "Human Development and Economic Growth," Working Papers 887, Economic Growth Center, Yale University.
  9. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  10. Cunado, J. & Perez de Gracia, F., 2006. "Real convergence in Africa in the second-half of the 20th century," Journal of Economics and Business, Elsevier, vol. 58(2), pages 153-167.
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  12. 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.
  13. repec:wbk:wbpubs:12426 is not listed on IDEAS
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