The dynamic effect of international tourism on economic development: China’s experience

Abstract

ABSTRACT This is the first work to use the novel multivariate quantile-on-quantile method re-examining the growth hypothesis in China’s 12 western regions. The findings show a favorable association between tourism and economic development in western areas, with significant variability among these regions and quantiles within each region. Gansu, Shanxi, Tibet and Xinjiang were identified as having the weakest linkages, presumably as a result of the tourism industry’s relatively low importance in comparison to other important economic activity in China’s 12 western regions. As a result, across a wide variety of locations, including Chognqing, Inner Mongolia and Ningxia, the most pronounced correlation between tourism and economic development was shown to be positive for the vast majority of quantile combinations.