nep-tur New Economics Papers
on Tourism Economics
Issue of 2012‒12‒10
three papers chosen by
Antonello Scorcu
University of Bologna

  1. Tourism and regional growth in Europe By Raffaele Paci; Emanuela Marrocu
  2. On the impact of the euro on international tourism By María Santana Gallego; Jorge Vicente Pérez Rodríguez; Francisco José Ledesma Rodríguez
  3. Beyond Macroeconomic Stability: The Role of Selective Interventions in Guyana’s Growth By Williams, Joycelyn

  1. By: Raffaele Paci; Emanuela Marrocu
    Abstract: Tourism represents one of the most relevant and fast growing industry in the world and the economic literature has widely analysed at the country level the role of the international flows in the development process. However, it is essential to consider also the impact of domestic tourism as it constitutes the largest component and can significantly influence the growth process at the regional level. Therefore, the aim of this paper is to analyse the impact of both domestic and international tourism on the economic growth process for a wide set of 179 regions belonging to ten European countries, which are highly representative of total tourism flows in Europe. The econometric analysis is carried out for the period 1999-2009 and it is based on a spatial growth regression framework, where the growth rate of GDP per capita at the regional level depends on tourism flows in addition to the traditional production inputs like physical, human and technological capital. Besides controlling for the initial conditions, we also include covariates for geographical, industrial, social and institutional features of the regions. Results, robust to several robustness checks, show the positive effect of domestic and international tourism flows on regional growth.
    Keywords: regional economic growth; tourism flows; spatial dependence; Europe
    JEL: R11 L83 C31
    Date: 2012
  2. By: María Santana Gallego (Universitat de les Illes Balears); Jorge Vicente Pérez Rodríguez (Universidad de Las Palmas de Gran Canaria); Francisco José Ledesma Rodríguez (Universided de La Laguna)
    Abstract: This paper studies the effect of the inception of the euro on the international tourism of the Eurozone. To do this, a gravity model is estimated using two different samples, the OECD countries and the European OECD countries, over the period 1995-2008. The results suggest a noticeable impact of the euro on tourism, bigger than estimated in previous research. However, evidence of tourism diversion is found. The estimates also indicate a greater impact of the introduction of coins and notes in 2002 than the effect of the irrevocable fixing of conversion rates in 1999. Furthermore, the results show that the euro effect on tourism could have been anticipated during earlier stages of the EMU.
    Keywords: currency unions, euro effect, panel data, international tourist arrivals
    JEL: F10 F15
    Date: 2012
  3. By: Williams, Joycelyn
    Abstract: This paper examines Guyana’s growth record 1992 to 2010, against one aspect of the World Bank’s Functional Model of Growth (1993). This model was developed by the Bank following its review of the development experience of several of the high performing Asian economies, many of which are island states. In this model, growth depends on three pillars : a) policies that promote macro-economic stability- that is low increase in price levels, stable currency exchange rates, low indebtedness, b) selective policy interventions, and c) institutional policies such as a technocratic civil service, and wealth sharing mechanisms. Since each of these three pillars can be the subject of lengthy discussion, this paper focuses on the role of Selective Interventions in Guyana’s growth record since 1992. The paper will discuss how selective interventions were the cornerstone of the Asian Islands industrial policy which allowed them to achieve sustained growth over three decades (1960’s to 1990’s), and then use that basis to discuss Guyana. According to current development thought, selective policy interventions are the cornerstone of a successful industrial policy. Such interventions includes the following: low interest rates or credit often provided by development banks, focusing credit on the high growth sectors, deliberately giving certain industries tax concessions, and supporting arrangements that will push exports of the favored industries. In keeping with structural change theory, the favored industries tend to be manufacturing and services. The paper in focusing on Guyana will therefore look at the kind of selective policy interventions that Guyana has used to stimulate growth since 1992. It looks at whether there was a policy using such special interventions, and kind of interventions used. We will also assess the extent to which these special interventions have focused on high growth industries using case studies of sugar and tourism. We offer an assessment of what factors prevented the Government from using the selective interventions to the extent they were used by the island states in Asia.
    Keywords: Guyana; Structural Adjustment; Macroeconomic Stabilization; Caribbean Economies
    JEL: O10 L50
    Date: 2012–07–30

This nep-tur issue is ©2012 by Antonello Scorcu. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.