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Towards The Quest To Reduce Income Inequality In Africa: Is There A Synergy Between Tourism Development And Governance?

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  • Ofori, Isaac K.
  • Dossou, Marcel A. M.
  • Seyi, Akadiri S.
Abstract
Despite the growing attention on the tourism development-income inequality nexus, a conspicuous gap in the literature is that rigorous empirical works examining how good governance moderates the relationship is hard to find. Anchoring on the trickle-down theory and the tourism-led growth hypothesis, this study fills this void in the literature based on data for 48 African countries for the period 1996 – 2020. We provide strong evidence robust to several specifications from the GMM estimator to show that, though unconditionally both tourism development and governance reduce income inequality in Africa, the effect of the former is amplified in the presence of quality economic, political and institutional governance. Particularly, we find that control of corruption and political are keys for propelling Africa’s tourism sector contribute to policymakers’ quest of fostering shared prosperity in the continent. Policy recommendations are provided in line with SDG 10 and Aspiration 1 and 3 of Africa’s Agenda 2063.

Suggested Citation

  • Ofori, Isaac K. & Dossou, Marcel A. M. & Seyi, Akadiri S., 2021. "Towards The Quest To Reduce Income Inequality In Africa: Is There A Synergy Between Tourism Development And Governance?," MPRA Paper 111091, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:111091
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    Cited by:

    1. Dossou, Toyo Amègnonna Marcel & Ndomandji Kambaye, Emmanuelle & Asongu, Simplice A. & Alinsato, Alastaire Sèna & Berhe, Mesfin Welderufael & Dossou, Kouessi Pascal, 2023. "Foreign direct investment and renewable energy development in sub-saharan Africa: Does governance quality matter?," Renewable Energy, Elsevier, vol. 219(P1).
    2. Charles S. Saba & Simplice A. Asongu & Nicholas Ngepah & Yolande E. Ngoungou, 2023. "Governance in the exploration of global and regional determinants of ICT development," Working Papers of the African Governance and Development Institute. 23/040, African Governance and Development Institute..
    3. Samba Diop & Simplice A. Asongu & Vanessa S. Tchamyou, 2021. "Mitigating the Macroeconomic Impact of Severe Natural Disasters in Africa: Policy Synergies," Working Papers 21/094, European Xtramile Centre of African Studies (EXCAS).
    4. Nchofoung, Tii N. & Asongu, Simplice A., 2022. "ICT for sustainable development: Global comparative evidence of globalisation thresholds," Telecommunications Policy, Elsevier, vol. 46(5).
    5. Toyo Amègnonna Marcel Dossou, 2023. "Income Inequality in Africa: Exploring the Interaction Between Urbanization and Governance Quality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 167(1), pages 421-450, June.
    6. Toyo A. M. Dossou & Dossou K. Pascal & Emmanuelle N. Kambaye & Simplice A. Asongu & Alastaire S. Alinsato, 2024. "The Financial development-renewable energy consumption nexus in Africa: Does governance quality matter?," Working Papers 24/020, European Xtramile Centre of African Studies (EXCAS).

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    More about this item

    Keywords

    Africa; Corruption; Governance; Income Inequality; Tourism Development; Tourism Receipts;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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