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Tourism and Economic Development in ASEAN 1998–2013

Author

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  • Berly Martawardaya

    (Department of Economics, Faculty of Economics and Business, Universitas Indonesia)

Abstract

Many countries support government policies to encourage tourism sector, including ASEAN countries, due to an assumption that tourism contributes positively to GDP and poverty reduction. This study investigates that assumption, as well as the correlation between tourism and HDI, by applying panel data regression to eight ASEAN countries (Brunei Darussalam, Indonesia, Laos Singapore, Malaysia, Thailand, the Philippines, and Vietnam,) during 1998–2013. We found that the number of international tourist arrivals as a proxy variable for tourism have a significant and positive correlation with poverty reduction. Tourism is also proven to increase GDP per capita (albeit in a smaller magnitude) and increase HDI (in an even smaller scale). These findings confirmed our hypothesis on the positive effects of tourism. It is recommended that the tourist promotion is continued while studying the best practices to strategically develop the tourism sector in order to strengthen the positive correlation.

Suggested Citation

  • Berly Martawardaya, 2017. "Tourism and Economic Development in ASEAN 1998–2013," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 63, pages 114-125, December.
    • Handle: RePEc:lpe:efijnl:201707
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    References listed on IDEAS

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    5. Bichaka Fayissa & Christian Nsiah & Badassa Tadasse, 2009. "Tourism and Economic Growth in Latin American Countries(LAC): Further Empirical Evidence," Working Papers 200902, Middle Tennessee State University, Department of Economics and Finance.
    6. E. Çağlayan & N. Şak & K. Karymshakov, 2012. "Relationship between Tourism and Economic Growth: A Panel Granger Causality Approach," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(5), pages 591-602.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Wen-Chuan FU & Chia-Jui PENG & Tzu-Yi YANG, 2020. "Influence of Tourism on Economic Development in Asian Countries," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 5(2), pages 207-216, December.

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    More about this item

    Keywords

    tourism; economic development; ASEAN;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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