Tourism as determinant of economic growth: the case of south-east Asian countries

Abstract

Today tourism represents one of the most dynamic economic sectors in the world. Even if the majority of international tourism still takes place within the developed world, recently tourism to developing countries is becoming a significant and increasing phenomenon, mainly to South-East Asian and Pacific countries. This study aims to verify if tourism represents a determinant of growth in such countries. Following recent empirical literature about growth, and mainly Eugenio-Martin, Morales and Scarpa (2004), a dynamic panel data model is adopted here to test for convergence. Results confirm the importance of tourists arrivals on the economic growth.