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Tourism development and regional production efficiency: Evidence from southwestern China

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  • Bo Zhou

    (Xiamen University, China)

  • Yanping Xu

    (Xiamen University, China)

  • Seul Ki Lee

    (Sejong University, Korea)

Abstract

This study examines the relationship between the production efficiency of a region and tourism flows. We use stochastic frontier production models with spatial effects based on data from 46 regions in southwestern China, most of which are economically underdeveloped. The results show that tourist flows (TFs) into a region are significantly related to the region’s production efficiency. The TFs in the neighboring regions also correlate with the production efficiency of a region. This study validates the tourism-led efficiency enhancement proposition at the regional level and has rich implications for practice.

Suggested Citation

  • Bo Zhou & Yanping Xu & Seul Ki Lee, 2019. "Tourism development and regional production efficiency: Evidence from southwestern China," Tourism Economics, , vol. 25(5), pages 800-818, August.
    • Handle: RePEc:sae:toueco:v:25:y:2019:i:5:p:800-818
    DOI: 10.1177/1354816618810250
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    2. Assaf, A. George & Tsionas, Mike & Kock, Florian & Josiassen, Alexander, 2021. "A Bayesian non-parametric stochastic frontier model," Annals of Tourism Research, Elsevier, vol. 87(C).

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