Prospects and Limits of Tourism-Led Growth: The International Evidence

Adamos Adamou and Sofronis Clerides
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Adamos Adamou: University of Cyprus

Review of Economic Analysis, 2010, vol. 2, issue 3, 287-303

Abstract: We investigate the relationship between tourism specialization and economic growth. We deviate from previous studies - which have reported mixed evidence - by allowing the relationship to take a nonlinear form. We find that tourism specialization is associated with higher rates of economic growth at relatively low levels of specialization but eventually diminishing returns set in and tourism's contribution becomes minimal. The policy lesson is that there is promise for tourism-led growth in developing countries but other economic activities must also be developed in order to carry the economy forward once the potential of tourism-led growth has been exhausted.

Keywords: Forecasting; agricultural economics (search for similar items in EconPapers)
JEL-codes: F43 O57 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (28)

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Working Paper: Prospects and Limits of Tourism-Led Growth: The International Evidence (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ren:journl:v:2:y:2010:i:3:p:287-303

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