The impact of tourism growth on income inequality: Evidence from developing and developed economies

Jianchun Fang; Giray Gozgor; Sudharshan Reddy Paramati; Wanshan Wu

doi:10.1177/1354816620934908

The impact of tourism growth on income inequality: Evidence from developing and developed economies

Jianchun Fang, Giray Gozgor, Sudharshan Reddy Paramati (Lead / Corresponding author), Wanshan Wu (Lead / Corresponding author)

University of Dundee School of Business

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Abstract

In this article, we investigate the effects of tourism indicators on income inequality (IIE) in a sample of 102 countries. We divide the sample countries into 71 developing and 31 advanced economies. Using annual data from 1995 to 2014, we employ panel unit root tests, cointegration, fixed-effects, fully modified ordinary least squares, and causality techniques. Our findings show that tourism indicators have a significant negative impact on IIE in developing economies, while they have an insignificant impact in developed economies. Conversely, economic globalization increases IIE in developing economies, whereas its effect is positive but statistically insignificant in developed countries. From these findings, the study outlines detailed policy and practical implications.

Original language	English
Number of pages	23
Journal	Tourism Economics
Early online date	13 Jul 2020
DOIs	https://doi.org/10.1177/1354816620934908
Publication status	E-pub ahead of print - 13 Jul 2020

Keywords

C33
D63
JEL Codes: Z32
economic globalization
inbound tourism
income inequality
panel data estimations
tourism development

UN SDGs

This output contributes to the following Sustainable Development Goal(s)

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title = "The impact of tourism growth on income inequality: Evidence from developing and developed economies",

abstract = "In this article, we investigate the effects of tourism indicators on income inequality (IIE) in a sample of 102 countries. We divide the sample countries into 71 developing and 31 advanced economies. Using annual data from 1995 to 2014, we employ panel unit root tests, cointegration, fixed-effects, fully modified ordinary least squares, and causality techniques. Our findings show that tourism indicators have a significant negative impact on IIE in developing economies, while they have an insignificant impact in developed economies. Conversely, economic globalization increases IIE in developing economies, whereas its effect is positive but statistically insignificant in developed countries. From these findings, the study outlines detailed policy and practical implications.",

keywords = "C33, D63, JEL Codes: Z32, economic globalization, inbound tourism, income inequality, panel data estimations, tourism development",

author = "Jianchun Fang and Giray Gozgor and Paramati, {Sudharshan Reddy} and Wanshan Wu",

note = "The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: This work was supported by the National Social Science Fund of China (16BJY052); Zhejiang Provincial Natural Science Foundation, China (LY18G030040; LZ20G010002; and LY20G030024); and Fundamental Research Funds for the Provincial Universities of Zhejiang, China (GB201902002).",

year = "2020",

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AU - Fang, Jianchun

AU - Gozgor, Giray

AU - Paramati, Sudharshan Reddy

AU - Wu, Wanshan

N1 - The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: This work was supported by the National Social Science Fund of China (16BJY052); Zhejiang Provincial Natural Science Foundation, China (LY18G030040; LZ20G010002; and LY20G030024); and Fundamental Research Funds for the Provincial Universities of Zhejiang, China (GB201902002).

PY - 2020/7/13

Y1 - 2020/7/13

N2 - In this article, we investigate the effects of tourism indicators on income inequality (IIE) in a sample of 102 countries. We divide the sample countries into 71 developing and 31 advanced economies. Using annual data from 1995 to 2014, we employ panel unit root tests, cointegration, fixed-effects, fully modified ordinary least squares, and causality techniques. Our findings show that tourism indicators have a significant negative impact on IIE in developing economies, while they have an insignificant impact in developed economies. Conversely, economic globalization increases IIE in developing economies, whereas its effect is positive but statistically insignificant in developed countries. From these findings, the study outlines detailed policy and practical implications.

AB - In this article, we investigate the effects of tourism indicators on income inequality (IIE) in a sample of 102 countries. We divide the sample countries into 71 developing and 31 advanced economies. Using annual data from 1995 to 2014, we employ panel unit root tests, cointegration, fixed-effects, fully modified ordinary least squares, and causality techniques. Our findings show that tourism indicators have a significant negative impact on IIE in developing economies, while they have an insignificant impact in developed economies. Conversely, economic globalization increases IIE in developing economies, whereas its effect is positive but statistically insignificant in developed countries. From these findings, the study outlines detailed policy and practical implications.

KW - C33

KW - D63

KW - JEL Codes: Z32

KW - economic globalization

KW - inbound tourism

KW - income inequality

KW - panel data estimations

KW - tourism development

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U2 - 10.1177/1354816620934908

DO - 10.1177/1354816620934908

M3 - Article

JO - Tourism Economics

JF - Tourism Economics

SN - 1354-8166

ER -

The impact of tourism growth on income inequality: Evidence from developing and developed economies

Abstract

Keywords

UN SDGs

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