Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/250116 
Year of Publication: 
2021
Series/Report no.: 
AGDI Working Paper No. WP/21/092
Publisher: 
African Governance and Development Institute (AGDI), Yaoundé
Abstract: 
Despite the growing attention on the tourism development-income inequality nexus, a conspicuous gap in the literature is that rigorous empirical works examining how good governance moderates the relationship is hard to find. Anchoring on the trickle-down theory and the tourism-led growth hypothesis, this study fills this void in the literature based on data for 48 African countries for the period 1996 – 2020. We provide strong evidence robust to several specifications from the GMM estimator to show that, though unconditionally, both tourism development and governance reduce income inequality in Africa, the effect of the former is amplified in the presence of quality economic, political and institutional governance. Particularly, we find that control of corruption and political stability are keys for propelling Africa’s tourism sector to contribute to shared income distribution across the continent. Policy recommendations are provided in line with SDG 10 and Aspirations 1 and 3 of Africa’s Agenda 2063.
Subjects: 
Africa
Corruption
Governance
Income Inequality
Tourism Development
Tourism Receipts
JEL: 
C33
D31
D63
H11
L5
O55
Z32
Document Type: 
Working Paper

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