Effect of inbound tourism on inclusive growth: Does institutionalized democracy matter?

Alex O. Acheampong; Eric Evans Osei Opoku; Isaac Koomson

doi:10.1016/j.tmp.2025.101382

Effect of inbound tourism on inclusive growth: Does institutionalized democracy matter?

Alex O. Acheampong, Eric Evans Osei Opoku, Isaac Koomson

Research output: Journal Publication › Article › peer-review

Abstract

This paper examines the effect of inbound tourism on inclusive growth and whether the effect is moderated by countries' democratic institutions. Using data from 154 countries from 2000 to 2020 and the dynamic generalized method of moments estimator, we found that inbound tourism (tourism arrival, receipt, and expenditure) is positively related to inclusive growth. Also, democracy is found to have a significant positive effect on inclusive growth. The results also showed that the impact of inbound tourism on inclusive growth is moderated by democracy. The results are consistently established when alternative econometric methods are applied, and they vary across income groups.

Original language	English
Article number	101382
Journal	Tourism Management Perspectives
Volume	58
DOIs	https://doi.org/10.1016/j.tmp.2025.101382
Publication status	Published - Sept 2025

Keywords

Democratic institutions
Inclusive growth
Median-voter hypothesis
Tourism-led growth

ASJC Scopus subject areas

Tourism, Leisure and Hospitality Management

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.tmp.2025.101382

Cite this

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title = "Effect of inbound tourism on inclusive growth: Does institutionalized democracy matter?",

abstract = "This paper examines the effect of inbound tourism on inclusive growth and whether the effect is moderated by countries' democratic institutions. Using data from 154 countries from 2000 to 2020 and the dynamic generalized method of moments estimator, we found that inbound tourism (tourism arrival, receipt, and expenditure) is positively related to inclusive growth. Also, democracy is found to have a significant positive effect on inclusive growth. The results also showed that the impact of inbound tourism on inclusive growth is moderated by democracy. The results are consistently established when alternative econometric methods are applied, and they vary across income groups.",

keywords = "Democratic institutions, Inclusive growth, Median-voter hypothesis, Tourism-led growth",

author = "Acheampong, {Alex O.} and Opoku, {Eric Evans Osei} and Isaac Koomson",

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year = "2025",

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doi = "10.1016/j.tmp.2025.101382",

language = "English",

volume = "58",

journal = "Tourism Management Perspectives",

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T2 - Does institutionalized democracy matter?

AU - Acheampong, Alex O.

AU - Opoku, Eric Evans Osei

AU - Koomson, Isaac

PY - 2025/9

Y1 - 2025/9

N2 - This paper examines the effect of inbound tourism on inclusive growth and whether the effect is moderated by countries' democratic institutions. Using data from 154 countries from 2000 to 2020 and the dynamic generalized method of moments estimator, we found that inbound tourism (tourism arrival, receipt, and expenditure) is positively related to inclusive growth. Also, democracy is found to have a significant positive effect on inclusive growth. The results also showed that the impact of inbound tourism on inclusive growth is moderated by democracy. The results are consistently established when alternative econometric methods are applied, and they vary across income groups.

AB - This paper examines the effect of inbound tourism on inclusive growth and whether the effect is moderated by countries' democratic institutions. Using data from 154 countries from 2000 to 2020 and the dynamic generalized method of moments estimator, we found that inbound tourism (tourism arrival, receipt, and expenditure) is positively related to inclusive growth. Also, democracy is found to have a significant positive effect on inclusive growth. The results also showed that the impact of inbound tourism on inclusive growth is moderated by democracy. The results are consistently established when alternative econometric methods are applied, and they vary across income groups.

KW - Democratic institutions

KW - Inclusive growth

KW - Median-voter hypothesis

KW - Tourism-led growth

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DO - 10.1016/j.tmp.2025.101382

M3 - Article

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SN - 2211-9736

VL - 58

JO - Tourism Management Perspectives

JF - Tourism Management Perspectives

M1 - 101382

ER -

Effect of inbound tourism on inclusive growth: Does institutionalized democracy matter?

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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