| Abstract: |
Employing bootstrapped fixed and random effects estimation techniques on
five-year-non-overlapping-averaged data, covering 1980 through 2019, this
study, firstly, investigates, empirically, the potential bi-causal
relationship between international tourist arrivals and the importation of
consumables/merchandises, in the case of 45 sovereign islands. The growth
implication of a concurrent pursuit of tourism expansion and merchandise
importations is also examined. The study further investigates how
over-reliance on imported merchandise to feed international tourists, and
over-specialisation in the tourism sector, affect the tourism-led-growth
hypothesis in case of these islands. Results from the study postulate that an
increase in arrivals of international tourists significantly leads to an
increase in the importation of consumable merchandises, and vice versa.
Moreover, a moderate importation of merchandises to sustain tourist arrivals
is significantly observed not to be detrimental to the growth of islands
across the globe. However, the results further reveal that over-reliance on
imported merchandises for the sake of international tourists, as well as
over-specialisation in tourism with the help of imported merchandises, both
exert significant detrimental net effects on the economic growth of islands
across the globe. The findings hold policy guidelines for the pursuit of
tourism-led and merchandise-import-led growth strategies among global islands. |