IDEAS home Printed from https://ideas.repec.org/a/spr/jecstr/v14y2025i1d10.1186_s40008-025-00349-2.html
   My bibliography  Save this article

Exploring the effects of tourism capital investment on income inequality and poverty in the European Union countries

Author

Listed:
  • Daniela Castilho

    (University of Coimbra)

  • José Alberto Fuinhas

    (University of Coimbra)

Abstract

The role of tourism in reducing inequalities has been studied and investigated in the literature. However, the specific effect of tourism investments on decreasing income inequalities, particularly given its capacity to alleviate poverty, has been little studied. Moreover, while existing research focuses on developing countries, this influence may be equally relevant in developed economies. Therefore, this article aims to understand the effects of tourism capital investment on income inequality and poverty using data from 2006 to 2019 for a sample of 24 European Union nations. To this end, the panel corrected standard errors methodology was carried out to account for data characteristics. The findings of the primary analysis suggest that tourism capital investment, international tourist arrivals, the human development index, and trade globalization contribute to mitigating income inequality and poverty across the EU region. Conversely, the age dependency ratio has a positive effect on both factors. The robustness check confirms that tourism investments-related indicators (tourism capital investment and travel and tourism direct contribution to employment) reduce income inequality and poverty in EU countries.

Suggested Citation

  • Daniela Castilho & José Alberto Fuinhas, 2025. "Exploring the effects of tourism capital investment on income inequality and poverty in the European Union countries," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 14(1), pages 1-24, December.
    • Handle: RePEc:spr:jecstr:v:14:y:2025:i:1:d:10.1186_s40008-025-00349-2
    DOI: 10.1186/s40008-025-00349-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40008-025-00349-2
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40008-025-00349-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jecstr:v:14:y:2025:i:1:d:10.1186_s40008-025-00349-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.