Exploring the links between tourism and quality of institutions

Abstract

ABSTRACT: This paper introduces a new perspective on the impacts of tourism on host communi-ties by analyzing the links between tourism specialization and quality of institutions. Our research has two principal aims: firstly, to test the significance and sign of this relationship; and secondly, to explore the channels through which tourism could affect institutional qual-ity. To this end, an econometric analysis is conducted using a sample of 92 countries over the period 1995-2014. The results indicate that there is a significant and positive associa-tion between tourism specialization and institutional quality. Moreover, this relation can be explained through three main channels: level of income, income inequality, and economic freedom.

RESUMEN: Este trabajo aporta una nueva perspectiva sobre los impactos del turismo analizando las relaciones entre la especialización turística de un país y la calidad de sus instituciones. La investigación plantea dos objetivos: (1) testar empíricamente la significatividad y signo de dichas relaciones y (2) explorar los canales a través de los que se producen. Realizamos un análisis econométrico para 92 países y 20 años. Los principales resultados indican la existencia de una asociación significativa y positiva entre turismo y calidad institucional que se produce principalmente a través de tres canales: nivel de renta, distribución de la renta y libertad económica.