An index of the economic dependence on Tourism

Bienvenido Ortega; Ribeiro, Manuel Alector

http://hdl.handle.net/10400.1/25832

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Authors

Bienvenido Ortega

Ribeiro, Manuel Alector

Abstract(s)

This study proposes a methodology to construct a Tourism Economic Dependence Index for a sample of 144 countries spanning the period 1995-2019. This index aims to serve as a summary measure of countries' dependence on tourism while controlling for differences in economic development levels across countries. Findings suggest that an index value of 20% may be considered a threshold for identifying highly tourism-dependent countries. Furthermore, the results of the index indicate that economies have experienced a slight trend toward higher levels of dependence on tourism since the global financial crisis. However, estimates from a panel convergence model suggest that the hypothesis of convergence toward a common long-run equilibrium in index levels across countries can be rejected. Instead, different groups of countries converging toward the same long-run equilibrium level of the index have been identified.