| By: |
Isaac K. Ofori (University of Insubria, Varese, Italy);
Toyo A. M. Dossou (Chengdu, China);
Seyi S. Akadiri (Central Bank of Nigeria, Abuja, Nigeria) |
| Abstract: |
Despite the growing attention on the tourism development-income inequality
nexus, a conspicuous gap in the literature is that rigorous empirical works
examining how good governance moderates the relationship is hard to find.
Anchoring on the trickle-down theory and the tourism-led growth hypothesis,
this study fills this void in the literature based on data for 48 African
countries for the period 1996 – 2020. We provide strong evidence robust to
several specifications from the GMM estimator to show that, though
unconditionally, both tourism development and governance reduce income
inequality in Africa, the effect of the former is amplified in the presence of
quality economic, political and institutional governance. Particularly, we
find that control of corruption and political stability are keys for
propelling Africa’s tourism sector to contribute to shared income
distribution across the continent. Policy recommendations are provided in line
with SDG 10 and Aspirations 1 and 3 of Africa’s Agenda 2063. |
| Keywords: |
Africa; Corruption; Governance; Income Inequality; Tourism Development; Tourism Receipts |
| JEL: |
C33 D31 D63 H11 L5 O55 Z32 |
| Date: |
2021–01 |
| URL: |
http://d.repec.org/n?u=RePEc:abh:wpaper:21/092&r= |