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Tourism Specialization, Absorptive Capacity, and Economic Growth.pdf (533.59 kB)

Tourism Specialization, Absorptive Capacity, and Economic Growth

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posted on 2022-02-22, 12:17 authored by Glauco De Vita, Kyaw, Sandy
This 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.


Published in

Journal of Travel Research




  • AM (Accepted Manuscript)


De Vita, G. and Kyaw, K.S. (2017) 'Tourism specialization, absorptive capacity, and economic growth', Journal of Travel Research, 56(4), pp.423-435

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Cardiff Met Affiliation

  • Cardiff School of Management

Cardiff Met Authors

Sandy Kyaw

Cardiff Met Research Centre/Group

  • WCTR (Welsh Centre for Tourism Research)

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  • © The Publisher

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