Tourism as an alternative source of regional growth in Portugal: a panel data analysis at NUTS II and III levels
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The role of tourism is of vital economic importance, particularly for small countries with a privileged geographical location and favourable weather conditions. This paper examines the importance of tourism as a conditioning factor for higher regional growth in Portugal by employing the conditional convergence hypothesis of Barro and Sala-i-Martin, associated with the endogenous growth theory. The panel data estimation approach provides evidence of the positive impact of tourism (through the accommodation capacity) on the growth in per-capita income among the Portuguese regions, increasing the rate of convergence. Therefore, tourism can be considered as an alternative source for stimulating higher regional growth in Portugal, if the supply characteristics of this sector are improved.
KeywordsTourism Conditional convergence Accommodation capacity Panel regressions
JEL ClassificationC23 D12 L83
We are very grateful to the anonymous referees for their critical comments and suggestions that have helped to improve an earlier version of the paper.
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