Does tourism reduce the shadow economy? An international evidence.

ABSTRACT: This paper investigates one of the positive contributions of tourism to the economy through the lens of its influences on the shadow economy. Specifically, our study analyzes the effects of five indicators of tourism consumption (including domestic tourism spending, international travel and tourism consumption, business tourism spending, leisure tourism spending, and outbound tourism spending on the percentage of shadow economy to GDP) in 129 economies between 1996 and 2015. We find interesting results that contribute to the existing literature about tourism economics. Firstly, the development of the inbound tourism industry reduces the shadow economy significantly, while outbound tourism causes higher underground economic activities. Secondly, the influence of tourism on the

SUBMITTER: Nguyen CP 

PROVIDER: S-EPMC10687068 | biostudies-literature | 2023 Nov

REPOSITORIES: biostudies-literature