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posted on 2022-02-22, 12:17 authored by Glauco De Vita, Kyaw, SandyThis article investigates the relationship between tourism specialization and economic growth while accounting for the absorptive capacity of host (tourism destination) countries, defined in terms of financial system development. We use the system generalized methods-of-moments (SYS-GMM) estimation methodology to investigate this relationship for 129 countries over the period 1995–2011. The results support the hypothesis that the positive effect of tourism specialization on growth is contingent on the level of economic development as well as the financial system absorptive capacity of recipient economies. Consistent with the law of diminishing returns, we also find that for countries with a developed financial system, at exponential levels of tourism specialization, its effect on growth turns negative. Significant policy implications flow from these findings.
History
Published in
Journal of Travel ResearchPublisher
SageVersion
- AM (Accepted Manuscript)
Citation
De Vita, G. and Kyaw, K.S. (2017) 'Tourism specialization, absorptive capacity, and economic growth', Journal of Travel Research, 56(4), pp.423-435Print ISSN
0047-2875Electronic ISSN
1552-6763Cardiff Met Affiliation
- Cardiff School of Management
Cardiff Met Authors
Sandy KyawCardiff Met Research Centre/Group
- WCTR (Welsh Centre for Tourism Research)
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- © The Publisher