 Does the Investment Climate Determine the Transformation of Tourism Growth into Economic Development?Pablo Juan Cárdenas-GarcÃa and Juan Ignacio Pulido-Fernández Tourism Economics, 2014, vol. 20, issue 4, 669-694 Abstract: Currently, there are opposing views concerning the capacity of economic growth resulting from the expansion of tourism activity to influence an increase in the level of a country's economic development. In recent years a school of thought has been consolidating that there is no automatic relationship between the two, but that certain circumstances must occur in the structural foundations of a country for such a link to be made. The investment climate plays a decisive role in the economic development of a society. The aim of this paper is to identify, through a country-level empirical analysis, which specific factors related to the investment climate promote or hinder the transformation of tourism growth into an improvement of the living conditions of the population. The end result is that, in those countries with lower levels of development, the lack of an appropriate investment climate complicates this relationship (unlike in developed countries). Thus, continuing to invest in tourism in these countries without first solving the issues affecting the investment climate will lead to a failure of such investment. Keywords: investment climate; tourism growth; economic development; structural equation model; econometric modelling (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:20:y:2014:i:4:p:669-694 DOI: 10.5367/te.2013.0302 Access Statistics for this article More articles in Tourism Economics |
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