Tourism and Economic Development: the Beach Disease?

Mario Holzner

No 66, wiiw Working Papers from The Vienna Institute for International Economic Studies, wiiw

Abstract: This paper analyses empirically the danger of a Dutch Disease Effect in tourism-dependent countries in the long run. Data on 134 countries of the world over the period 1970-2007 is used. In a first step the long-run relationship between tourism and economic growth is analysed in a cross-country setting. The results are then checked in a panel data framework on GDP per capita levels that allows to control for reverse causality, non-linearity and interactive effects. It is found that there is no danger of a Beach Disease Effect. On the contrary, tourism-dependent countries do not face real exchange rate distortion and deindustrialization but higher than average economic growth rates. Investment in physical capital, such as transport infrastructure, is complementary to investment in tourism.

Keywords: tourism; Dutch Disease; economic development (search for similar items in EconPapers)
JEL-codes: F43 L83 O14 (search for similar items in EconPapers)
Pages: 31 pages including 9 Tables and 1 Figure
Date: 2010-06
New Economics Papers: this item is included in nep-dev and nep-tur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Published as wiiw Working Paper

Downloads: (external link)
https://wiiw.ac.at/tourism-and-economic-developmen ... disease-dlp-2173.pdf (application/pdf)

Related works:
Journal Article: Tourism and economic development: The beach disease? (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wii:wpaper:66

Ordering information: This working paper can be ordered from
https://wiiw.ac.at

Access Statistics for this paper

More papers in wiiw Working Papers from The Vienna Institute for International Economic Studies, wiiw Contact information at EDIRC.
Bibliographic data for series maintained by Customer service ().