Does tourism promote economic growth in Chinese ethnic minority areas? A nonlinear perspective

Abstract

Although the importance of tourism in the economic development of ethnic minority areas has been emphasized in previous research, little is known about its exact economic effects on these areas. Using panel data of 75 Chinese ethnic autonomous counties from 2007 to 2016, this paper empirically examines and quantifies the impact of tourism development on economic growth based on a threshold model. The empirical results indicate that tourism has a significant nonlinear effect on the economic growth in Chinese ethnic minority areas. Furthermore, tourism's contribution to economic growth tends to decrease along with increasing tourism specialization. In addition, the practical implications of this work are provided. • Examines the TLG hypothesis in the context of Chinese ethnic minority areas. • The nonlinear tourism–growth nexus is supported in Chinese ethnic minority areas. • Tourism positively impacts the economic growth of Chinese ethnic minority areas. • The economic returns of tourism decrease along with tourism development.