By: |
Arezki, Rabah;
Cherif, Reda;
Piotrowski, John |
Abstract: |
The present paper investigates whether tourism specialization is a viable
strategy for development. We estimate standard growth equations augmented with
a variable measuring tourism specialization using instrumental variables
techniques for a large cross-section of countries for the period 1980–2002. We
introduce an instrument for tourism based on the UNESCO World Heritage List.
We find that there is a positive relationship between the extent of tourism
specialization and economic growth. An increase of one standard deviation in
the share of tourism in exports leads to about 0.5 percentage point in
additional annual growth, everything else being constant. Our result holds
against a large array of robustness checks. |
Keywords: |
Tourism; economic development and growth and instrumental variables |
JEL: |
O11 O41 C82 C21 |
Date: |
2009–08 |
URL: |
http://d.repec.org/n?u=RePEc:pra:mprapa:17132&r=tur |