Advertisement

Portuguese Economic Journal

, Volume 7, Issue 1, pp 43–61 | Cite as

Tourism as an alternative source of regional growth in Portugal: a panel data analysis at NUTS II and III levels

  • Elias SoukiazisEmail author
  • Sara Proença
Original Article

Abstract

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.

Keywords

Tourism Conditional convergence Accommodation capacity Panel regressions 

JEL Classification

C23 D12 L83 

Notes

Acknowledgement

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.

References

  1. Arellano M, Bond S (1991) Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Rev Econ Stud 58:277–320CrossRefGoogle Scholar
  2. Balaguer J, Cantavella-Jordá M (2002) Tourism as a long-run economic growth factor: the Spanish case. Appl Econ 34:877–884CrossRefGoogle Scholar
  3. Barro R (1991), Economic growth in a cross section of countries. Q J Econ. 106(2):407–443 (May)CrossRefGoogle Scholar
  4. Barro R, Sala-i-Martin X (1991) Convergence across states and regions. Brookings Pap Econ Act 1:107–182CrossRefGoogle Scholar
  5. Barro R, Sala-i-Martin X (1992) Convergence. J Polit Econ 100:223–251CrossRefGoogle Scholar
  6. Barro R, Sala-i-Martin X (1995) Economic growth. McGraw-Hill, New York (International Editions)Google Scholar
  7. Bhagwati J, Srinivasan T (1979) Trade policy and development. In Dornbusch R, Frenkel J (eds) International economic policy: theory and evidence. Johns Hopkins University Press, Baltimore, pp 1–35Google Scholar
  8. Caselli F, Esquivel G, Lefort F (1996) Reopening the convergence debate: a new look at cross-country empirics. J Econ Growth 1:363–390CrossRefGoogle Scholar
  9. Evans P (1997) How fast do countries converge? Rev Econ Stat 79:219–25CrossRefGoogle Scholar
  10. Hazari R, Kaur C (1995) Tourism and welfare in the presence of pure monopoly in the non-traded goods sector. Int Rev Econ Finance 4:77–171CrossRefGoogle Scholar
  11. Hazari R, Ng A (1993) An analysis of tourist’s consumption of non-traded goods and services on the welfare of the domestic consumers. Int Rev Econ Finance 2:3–58CrossRefGoogle Scholar
  12. Hazari BR, Sgro PM (1995) Tourism and growth in a dynamic model of trade. J Int Trade Econ Dev 4:253–256CrossRefGoogle Scholar
  13. Helpman E, Krugman P (1985) Market structure and foreign trade. MIT Press, CambridgeGoogle Scholar
  14. Islam N (1995) Growth empirics: a panel data approach. Q J Econ 110:1127–1170CrossRefGoogle Scholar
  15. Krueger A (1980) Trade police as an input to development. Am Econ Rev 70:188–292Google Scholar
  16. Ledesma-Rodríguez F, Navarro-Ibáñez M, Pérez-Rodríguez J (2001) Panel data and tourism: a case study of Tenerife. Tour Econ 7:75–88CrossRefGoogle Scholar
  17. Mankiw N, Romer D, Weil D (1992) A contribution to the empirics of economic growth. Q J Econ 107:407–37CrossRefGoogle Scholar
  18. Martín Eugénio J, Morales M, Searpa R (2004) Tourism and economic growth in latin american countries: a panel data approach. FEEM Working Paper, University of York, YorkGoogle Scholar
  19. Proença S, Soukiazis E (2005) Demand for tourism in Portugal: a panel data approach, CEUNEUROP. Discussion Paper no. 29. Available at http://www4.fe.uc.pt/ceue (February)
  20. Sala-i-Martin X (1994), Cross-sectional regressions and the empirics of economic growth. Eur Econ Rev 38:739–747CrossRefGoogle Scholar
  21. Sala-i-Martin X (1996) Regional cohesion: evidence and theories of regional growth and convergence. Eur Econ Rev 40:1325–1352CrossRefGoogle Scholar
  22. Solow R (1956) A contribution to the theory of economics. Q J Econ 70:65–94CrossRefGoogle Scholar
  23. Temple J (1999) The new growth evidence. J Econ Lit XXXVII:112–156CrossRefGoogle Scholar
  24. Tondl G (2001) Convergence after divergence? Regional growth in Europe. Springer, WienCrossRefGoogle Scholar
  25. Williams A, Shaw G (1991) Tourism and economic development: Western European experiences, 2nd edn. Belhaven Press, LondonGoogle Scholar

Copyright information

© Springer-Verlag 2007

Authors and Affiliations

  1. 1.Faculty of EconomicsUniversity of CoimbraCoimbraPortugal
  2. 2.Polytechnic Institute of CoimbraCoimbraPortugal
  3. 3.Faculdade de EconomiaUniversidade de CoimbraCoimbraPortugal

Personalised recommendations