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Output Volatility and Tourism Specialization in Small Island Developing States

Author

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  • Mahalia Jackman

    (Antilles Economics, St George, Barbados)

Abstract

This paper investigates the relationship between tourism specialization and output volatility in a sample of 34 small island developing states (SIDS). The initial results suggest that there is a positive relationship between tourism and output volatility. Then, to test whether or not the impact of tourism is uniform across SIDS, the author divides the sample of SIDS by their regional groupings. The positive relationship between tourism specialization and volatility seems to be isolated to states in the Asia and Pacific region; that is, the region with the lowest level of tourism specialization on average. However, an evaluation of the fluctuations in tourism receipts indicates that the average volatility of tourism is highest in this region. This implies that the impact of tourism on economic volatility depends greatly on the level of volatility in tourism and, to a lesser extent, on the level of specialization.

Suggested Citation

  • Mahalia Jackman, 2014. "Output Volatility and Tourism Specialization in Small Island Developing States," Tourism Economics, , vol. 20(3), pages 527-544, June.
    • Handle: RePEc:sae:toueco:v:20:y:2014:i:3:p:527-544
    DOI: 10.5367/te.2013.0289
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    References listed on IDEAS

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    1. Martin Enilov & Yuan Wang, 2022. "Tourism and economic growth: Multi-country evidence from mixed-frequency Granger causality tests," Tourism Economics, , vol. 28(5), pages 1216-1239, August.
    2. Jackman, Mahalia & Lorde, Troy & Naitram, Simon & Greenaway, Tori, 2020. "Distance matters: the impact of physical and relative distance on pleasure tourists' length of stay in Barbados," Annals of Tourism Research, Elsevier, vol. 80(C).
    3. Mulan Ma & Weishu Zhao & Guanxu Wan & Taotao Deng & Yi Yang, 2023. "Specialization versus diversity: The role of city size in tourist cities," Tourism Economics, , vol. 29(8), pages 2081-2102, December.
    4. Chien-Chiang Lee & Godwin O Olasehinde-Williams & Ifedolapo Olabisi Olanipekun, 2022. "GDP volatility implication of tourism volatility in South Africa: A time-varying approach," Tourism Economics, , vol. 28(2), pages 435-450, March.

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