Time-frequency nexus between tourism development, economic growth, human capital, and income inequality in Singapore

Abstract

ABSTRACT Eliminating inequality is one of the United Nations’ 2030 sustainable development goals. However, quick growth and tourism development may increase the income gap between the higher- and lower-income classes. This study is conducted to analyse the lead-lag connectedness between three vital macroeconomic variables and income inequality from 1978 to 2019 in Singapore, a top-visited country. By adopting wavelet techniques, the outcomes reveal that tourism development (TO) positively drives income inequality (IE) at medium- and high-frequency, while economic growth (GDP) strongly impacts IE at medium frequency. Similarly, human capital (HDI) negatively influences IE during the same period. Based on these findings, the research suggests helpful lessons for Singapore and emerging countries in reducing income inequality.