Tourism's Contribution to Economic Growth: A Global Analysis for the First Decade of the Millenium

49 Pages Posted: 21 Nov 2011 Last revised: 22 Nov 2011

See all articles by Stanislav Hristov Ivanov

Stanislav Hristov Ivanov

Varna University of Management (VUM); Zangador

Craig Webster

Ball State University

Date Written: November 21, 2011

Abstract

The paper reviews the various methods and tourism development proxy variables used to measure the impact of tourism on economic growth. The growth decomposition methodology is employed with data for 174 countries for the years 2000-2010 to measure the impact of tourism on a country-by-country basis. Tourism’s contribution to economic growth is highest in Africa, Asia and Latin America and the Caribbean. It is slightly negative in Europe, North America and Oceania. The paper also investigates the factors that influence tourism’s contribution to growth. Results show that tourism’s contribution to growth is higher in economies with higher share of tourism in GDP. The implications and limitations of the growth decomposition methodology are also discussed.

Keywords: economic growth, tourism, economic impact, GDP, economic growth decomposition, tourism impact on economic growth

Suggested Citation

Ivanov, Stanislav Hristov and Webster, Craig, Tourism's Contribution to Economic Growth: A Global Analysis for the First Decade of the Millenium (November 21, 2011). Available at SSRN: https://ssrn.com/abstract=1962510 or http://dx.doi.org/10.2139/ssrn.1962510

Stanislav Hristov Ivanov (Contact Author)

Varna University of Management (VUM) ( email )

13 Oborishte Street
Varna, 9000
Bulgaria
+359 898 680713 (Phone)

HOME PAGE: http://www.vumk.eu

Zangador ( email )

Varna, 9010
Bulgaria

HOME PAGE: http://www.zangador.eu

Craig Webster

Ball State University ( email )

2000 W. University Avenue
Muncie, IN 47306
United States

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