nep-tur New Economics Papers
on Tourism Economics
Issue of 2021‒12‒06
two papers chosen by
Laura Vici
Università di Bologna

  1. Tourism Development and Poverty Alleviation in Sub-Saharan African Countries: An Empirical Investigation By Nicholas M Odhiambo
  2. Tourism management for financial access in Sub-Saharan Africa: inequality thresholds By Simplice A. Asongu; Mushfiqur Rahman; Okeoma J-P Okeke; Afzal S. Munna

  1. By: Nicholas M Odhiambo
    Abstract: In this study, the impact of tourism development on poverty alleviation is examined using panel data from 32 sub-Saharan African (SSA) countries during the period 2005-2014. Two indicators of tourism development are used, namely tourist arrivals and tourism revenue. In addition, four control variables have been used, namely economic growth, trade, the rule of law, and income inequality (measured by the Gini coefficient, the Atkinson index and the Palma ratio), thereby leading to three separate specifications for each tourism development proxy. Using the generalized method of moments (GMM) regression analysis, the study found that the impact of tourism development on poverty alleviation is not unanimous. When the number of tourist arrivals is used as a proxy, the results show that an increase in tourism development consistently leads to an increase in household welfare; hence, a decrease in poverty, irrespective of the specification used. However, when tourism revenue is used as a proxy, no significant impact of tourism development on household welfare is found to exist, irrespective of the model specification used. The results also show that income inequality has a clear negative impact on household welfare in SSA countries, while economic growth and the rule of law have a distinct positive effect.
    Date: 2021–11
  2. By: Simplice A. Asongu (Yaounde, Cameroon); Mushfiqur Rahman (London, UK); Okeoma J-P Okeke (London, UK); Afzal S. Munna (London, UK)
    Abstract: The study provides insights into how tourism can be managed to improve financial access in sub-Saharan Africa. The empirical evidence is based on the generalised method of moments. To make this assessment, inequality dynamics (i.e. the Gini coefficient, the Atkinson index and Palma ratio) are interacted with tourism (tourism receipts and tourists’ arrivals) to establish inequality levels that should not be exceeded in order for tourism to promote financial access in the sampled countries. From the findings, inequality levels that should not be exceeded for tourism to promote financial access are provided: (i) 0.666 of the Atkinson index and 5.000 of the Palma ratio for tourism receipts to promote financial access and (ii) for tourist arrivals to enhance financial access, 0.586, 0.721 and 6.597 respectively, of the Gini coefficient, the Atkinson index, and the Palma ratio. Policy implications are discussed.
    Keywords: Tourism; Management; Financial access; Inequality; Africa; Sustainable Development
    JEL: O10 O40 Z3 Z32
    Date: 2021–01

This nep-tur issue is ©2021 by Laura Vici. 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.