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Panel evidence on the impact of tourism growth on poverty, poverty gap and income inequality

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  • Renuka Mahadevan
  • Sandy Suardi
Abstract
Using a panel of 13 tourism-intensive economies for the period 1995–2012, this paper shows that rising growth in tourism which is proxied by tourism receipts to GDP ratio has an impact on poverty conditional on the poverty measure used. Using a panel Vector Autoregression method, there is little evidence to suggest that growth in tourism reduces headcount poverty. However, the poverty gap measure shows that the amount of money needed to help the poor out of poverty is significantly reduced. Based on different types of Gini coefficient, the results fail to find an improvement in income inequality resulting from tourism growth. Alternative measures such as relative poverty and poverty gap may be considered to better assess the impact of tourism on the poor.

Suggested Citation

  • Renuka Mahadevan & Sandy Suardi, 2019. "Panel evidence on the impact of tourism growth on poverty, poverty gap and income inequality," Current Issues in Tourism, Taylor & Francis Journals, vol. 22(3), pages 253-264, February.
    • Handle: RePEc:taf:rcitxx:v:22:y:2019:i:3:p:253-264
    DOI: 10.1080/13683500.2017.1375901
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    Cited by:

    1. Peiying Dang & Linjing Ren & Jie Li, 2024. "Does rural tourism reduce relative poverty? Evidence from household surveys in western China," Tourism Economics, , vol. 30(2), pages 498-521, March.
    2. Dwyer, Larry, 2024. "Tourism Degrowth and Resident Well-being," Journal of Tourism, Sustainability and Well-being, Cinturs - Research Centre for Tourism, Sustainability and Well-being, University of Algarve, vol. 12(3), pages 206-225.
    3. Junwook Chi, 2024. "Tourism development and income inequality in OECD countries: New insights from method of moments quantile regression," Tourism Economics, , vol. 30(3), pages 767-784, May.

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