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Is tourism effective in mitigating the shadow economy in developing countries? Evidence from China

Is tourism effective in mitigating the shadow economy in developing countries? Evidence from China Recent studies found that tourism can mitigate the shadow economy, but its effectiveness in a specific country remains uncertain. To fill the research gap, this study investigates the relationship between tourism and the shadow economy in China based on province level data for 2000-2016. The results reveal that the shadow economy will be adversely affected by tourism. Moreover, regional heterogeneity analysis indicates that in central and western regions of China, tourism is more effective in suppressing shadow activities. The findings contribute to a policy reference for mitigating the shadow economy and regulating tourism development. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Asia Pacific Journal of Tourism Research Taylor & Francis

Is tourism effective in mitigating the shadow economy in developing countries? Evidence from China

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References (45)

Publisher
Taylor & Francis
Copyright
© 2023 Asia Pacific Tourism Association
ISSN
1741-6507
eISSN
1094-1665
DOI
10.1080/10941665.2023.2207689
Publisher site
See Article on Publisher Site

Abstract

Recent studies found that tourism can mitigate the shadow economy, but its effectiveness in a specific country remains uncertain. To fill the research gap, this study investigates the relationship between tourism and the shadow economy in China based on province level data for 2000-2016. The results reveal that the shadow economy will be adversely affected by tourism. Moreover, regional heterogeneity analysis indicates that in central and western regions of China, tourism is more effective in suppressing shadow activities. The findings contribute to a policy reference for mitigating the shadow economy and regulating tourism development.

Journal

Asia Pacific Journal of Tourism ResearchTaylor & Francis

Published: Feb 1, 2023

Keywords: The shadow economy; tourism marketing; Asia Pacific; panel data; IV estimator

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