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Booming tourism industry and urban economic growth

Author

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  • Taotao Deng

    (Shanghai University of Finance and Economics, China)

  • Mulan Ma

    (Shanghai University of International Business and Economics, China)

Abstract

This article provides an empirical analysis of the risk of the “resource curse†in tourism-dependent economies. Using China`s tourism data for 48 major tourist cities from 2000 to 2012, the article reexamines the direct and indirect effects of tourism booms on urban economic growth within the framework of the resource curse. At the city level, there is some evidence for the presence of Dutch Disease symptoms as a consequence of high dependency on tourism industry. However, physical investment tends to be an important transmission channel via which tourism exerts a positive indirect effect on economic growth. The evidence becomes stronger for cities, which are more dependent on the tourism industry.

Suggested Citation

  • Taotao Deng & Mulan Ma, 2016. "Booming tourism industry and urban economic growth," Tourism Economics, , vol. 22(5), pages 1161-1168, October.
    • Handle: RePEc:sae:toueco:v:22:y:2016:i:5:p:1161-1168
    DOI: 10.5367/te.2015.0475
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    References listed on IDEAS

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    1. Sachs, J-D & Warner, A-M, 1995. "Natural Resource Abundance and Economic Growth," Papers 517a, Harvard - Institute for International Development.
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    3. Jean-Jacques Nowak & Mondher Sahli, 2007. "Coastal Tourism and ‘Dutch Disease’ in a Small Island Economy," Tourism Economics, , vol. 13(1), pages 49-65, March.
    4. Papyrakis, Elissaios & Gerlagh, Reyer, 2004. "The resource curse hypothesis and its transmission channels," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 181-193, March.
    5. Papyrakis, Elissaios & Gerlagh, Reyer, 2007. "Resource abundance and economic growth in the United States," European Economic Review, Elsevier, vol. 51(4), pages 1011-1039, May.
    6. Taotao Deng & Mulan Ma & Jianhua Cao, 2014. "Tourism Resource Development and Long-Term Economic Growth: A Resource Curse Hypothesis Approach," Tourism Economics, , vol. 20(5), pages 923-938, October.
    7. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
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    Cited by:

    1. Fumin Deng & Yuan Fang & Lin Xu & Zhi Li, 2020. "Tourism, Transportation and Low-Carbon City System Coupling Coordination Degree: A Case Study in Chongqing Municipality, China," IJERPH, MDPI, vol. 17(3), pages 1-17, January.

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