Tourist Attractions and Economic Growth in China: A Difference-in-Differences Analysis

Abstract

The construction of tourist attractions has become an important manifestation of local performance and the image of tourist destinations, as well as an important means for local governments to promote economic development. However, the causal relationship between tourist attractions and economic growth remains unclear. The article’s main purpose is to explore the causal effect of tourist attractions on economic growth. To do so, a difference-in-differences model is employed based on China’s city-level panel data from 2001 to 2019 involving 313 cities and 5947 observations. The results demonstrate that tourist attractions have a significant positive causal effect on China’s economic growth. Such causality is significant only in the east and central regions. Highway density, urban disposable income per capita, and the share of the tertiary industry have significant moderating effects. The validity of the causal relationship is confirmed using various rigorous robustness tests.