Abstract
The purpose of this study was to examine the relationship between the tourism and equitable distribution of income for the developed and developing countries using Panel VAR. The results indicate that economic growth and the first lag (one-year lag) of international tourism income negatively affect the poverty index in developed and developing countries. Impulses due to economic growth and poverty index have the greatest effect on international tourism income so that its effect remains after 10 periods permanently.
Highlights
Poverty is a multidimensional phenomenon that influences the quality of life in several ways rather than other phenomena
The main objective of the paper is to examine the impact of international tourism revenues on the poverty indicators in developing and developed countries by Panel vector autoregression (VAR) methods
Panel VAR is used as a multivariate model to estimate the relationship between tourism and the equitable distribution of income in developing (Brazil, Algeria, Egypt, Indonesia, India, Iran), and developed countries (Austria, Canada, Germany, Spanish, France, U.K. and United States) in 1999-2015
Summary
Poverty is a multidimensional phenomenon that influences the quality of life in several ways rather than other phenomena. Considering the variety of the results, this research seeks to assess tourism’s impact on the fair distribution of incomes in the two groups of developed and developing countries. The main objective of the paper is to examine the impact of international tourism revenues on the poverty indicators in developing and developed countries by Panel VAR methods. The paper evaluates the impact of trade, inflation, economic growth, and unemployment on poverty in these two groups. Methodology Panel VAR is used as a multivariate model to estimate the relationship between tourism and the equitable distribution of income in developing (Brazil, Algeria, Egypt, Indonesia, India, Iran), and developed countries (Austria, Canada, Germany, Spanish, France, U.K. and United States) in 1999-2015. INF, GDP, UN, TR, and TOUR are inflation, economic growth, unemployment, trade index, and international tourism revenue to GDP ratio, respectively.
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