Abstract
The main objective of this paper is to determine whether tourism contributes to the economic convergence in the EU member states. The starting point of the analysis is the theoretical concepts of σ-convergence and (conditional) β-convergence. For the purpose of examining the relationship between tourism and σ-convergence in the long and short term, the cointegration test is used. Additionally, panel analysis is used for testing the model of conditional convergence. In this model, tourism as a conditional factor is operationalised by monetary indicators (consumption components and capital investments) as well as by a non-monetary one (direct employment) based on the tourism satellite account methodological framework. The model also tests a range of economic, social and ecological impacts on tourism and the economic convergence. The results proved that, although there is a long-term and short-term relationship between tourism and the economic growth convergence, tourism does not contribute to the economic convergence in the European Union member states, at least not to the extent that was expected.
Highlights
Over the past 60 years, development in the European Union (EU) been fostered by three kinds of processes: deepening, widening and enlargement (Pelkmans, 2001)
The results proved that, there is a long-term and short-term relationship between tourism and the economic growth convergence, tourism does not contribute to the economic convergence in the European Union member states, at least not to the extent that was expected
Bearing in mind the foregoing, this paper aims to help extending current body of knowledge related to the contribution of tourism to economic convergence across the European Union
Summary
Over the past 60 years, development in the European Union (EU) been fostered by three kinds of processes: deepening (referring to policies, common regulation and economic liberalization), widening (of economic and other competences) and enlargement (growth in the number of member states) (Pelkmans, 2001). To support the efficiency of their integration, the EU set up economic and social cohesion goal in the Treaty of Rome (EC, 2002). In this regard, more balanced economic development and social welfare ought to be provided, creating preconditions for the faster progress of less developed member states to catch up with the more developed ones. More balanced economic development and social welfare ought to be provided, creating preconditions for the faster progress of less developed member states to catch up with the more developed ones This “catching-up” process known as the concept of the economic (growth) convergence, is introduced by the neoclassical theory of economic growth (Sala-i-Martin, 1996)
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