nep-tur New Economics Papers
on Tourism Economics
Issue of 2021‒04‒26
two papers chosen by
Laura Vici
Università di Bologna

  1. The Impact of Tourism Development on Economic Growth in Sub-Saharan Africa By Nyasha, Sheilla; Odhiambo, Nicholas; Asongu, Simplice
  2. Income inequality, tourism and resources endowment in Uruguay: a spatial and distributional approach By Natalia Porto; Natalia Espinola; Laura Carella

  1. By: Nyasha, Sheilla; Odhiambo, Nicholas; Asongu, Simplice
    Abstract: This study examines the dynamic impact of tourism development on economic growth in sub-Saharan Africa (SSA) using the Generalised Method of Moments and data covering the period from 2002 to 2018. The increasingly important role of tourism and the limelight the tourism sector has been enjoying of late, on the one hand, and the lack of sufficient coverage of tourism-growth nexus studies in Africa in general and in SSA in particular, motivated this study. Unlike most of the known panel data-based studies on tourism development and economic growth, this study has split the sub-Saharan African countries into low-income and middle-income sub-Saharan African countries. The results of the study show that tourism expenditure negatively affects economic growth while tourism receipts have the opposite effect in SSA. The findings are robust to the low-income sub-sample while only the effect of tourism expenditure is robust in the middle-income sub-sample.
    Keywords: Tourism Development; Economic Growth; Sub-Saharan Africa, SSA, Middle Income Countries, Low Income Countries, Generalised Method of Moments, GMM
    JEL: O10 O40 Z0
    Date: 2020–01
  2. By: Natalia Porto; Natalia Espinola; Laura Carella
    Abstract: It has been widely recognized that tourism plays a crucial role both as an income generator and as a source of employment in many countries. While its impact at local, regional and national level of employment is undoubted, there is a line of research that has pointed out that jobs in tourism sector have less favorable working conditions than other sectors and they could have negative effects on income distribution. Another feature that could be also related to income distribution is the regional endowment of touristic amenities, which could affect tourism activities. Considering these facts, it is possible that the allocation and distribution of amenities in a country could generate regional disparities in income distribution due to tourism. The aim of this study is to explore regional inequalities in wages and its relationship with the development of tourism in Uruguay. We estimate a spatial error model using a balanced panel data set from 2006 to 2019 on 19 Uruguayan departments. We built four indices of touristic amenities and then interact them with tourism employment, as a proxy for tourism development. The evidence suggests that there are some regional disparities in income distribution in tourism sector. Some specifications of the models show a positive relationship between tourism employment and inequality in labor income, and that the departments with cultural-historical amenities tend to have a more equalitarian distribution of labor income.
    Keywords: amenity-led development, income distribution, regional development, spatial econometrics, tourism-related employment, tourism development
    JEL: R1 L8 J4
    Date: 2020–11

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