The Impact of Tourism Development on Income Inequality in Iranian Provinces

Document Type : Research Paper

Authors

1 Professor in Economics at Tabriz University

2 Associate Professor in Economics, Tabriz University

3 Ph.D. student of Economics, Tabriz University

Abstract

Abstract
Many development planners believe that development of tourism industry is the key factor for sustainable development. This industry can play an effective role in national, regional development as well as diversifying the national and regional economies. One of the consequences of tourism industry is its impact on regional income change and income distribution together with its economic and social effects.
This paper investigates the relationship between tourism industry development and income inequality among the provinces. For estimating the research model a panel data regression method with cross-section/ period Fixed Effects Testing model for the period of 2000- 2014 was utilized.
The paper found that there is a negative and significant between tourism industry development and income inequality among the Iran's provinces such that by developing of tourism industry, as it is, the inequality of income among the provinces will be decreased. Moreover, the increase of agricultural activities and increase of per capita public expenditures will decrease of income inequality among the provinces while the increase of production and export of industrial goods will increase of income inequality among the provinces.
 
Introduction
In recent decades, the tourism industry has been increasing in both developed and developing countries. This industry has had a positive impact on economic growth through gaining foreign exchange and investment, increase of tax revenues and create job opportunities. Therefore in case of developing tourism industry in provinces the income equality would be declined.
The income inequality among the Iran's provinces is increasing such that during 2000-2014 years the per capita income of the top province to the last one increased from 3/78 to 6/2 As a result of the increase of income inequality, people of border- situated provinces migrating to center-situated provinces that led to worsening the income distribution against more underdeveloped provinces. Since in the five-year development plans instead of whole economy, economic sectors were highly considered therefore as a result of ignorance of balanced growth of the sectors the income inequality of the provinces was devastated. Accordingly, this paper is searching to find a response to decrease the income inequality among Iran's provinces through developing the tourism industry.
 
Materials and Methods
In this study, for analyzing data a panel econometric model has been used, because this model constitutes both time series and cross section data such that estimation problems like autocorrelation and co-linearity will not occur. Therefore, these estimates are valid and more reliable. Meanwhile, in this research variables of agricultural activities, industrial exports and per capita public expenditure were utilized as independent variables.
The empirical findings confirm a long-run equilibrium relationship between the tourism industry, at its current position, decrease income inequality significantly.
 
Discussion and Conclusion 
In order to attain sustainable development, by considering the negative relationship between the tourism industry and income inequality in all provinces of the country, the research recommends to the government improving infrastructure for develop tourism industry in all provinces specially in provinces with high natural capabilities and low per capita income. Moreover, the government can facilitate tourism industry through some financial policies like tax and insurance reduction incentives and technical and credit subsidies.  .
 
Conclusions
The estimated regression model showed that the development of tourism industry improves income distribution significantly. Meanwhile, increase of agricultural production, industrial exports and the per capita public expenditure caused to a reduction in income inequality.
 
Keywords: Income Inequality, Tourism Industry Development, Provinces of the Country, Panel Data.
 
 
 
References

Alam, M.S. and Paramati, S.R. (2015).The impact of tourism on income inequality in developing economies: Does Kuznets curve hypothesis exist? Annals of Tourism Research, 61: 111–126.
Goymen, K. (2000). Tourism and governance in Turkey, Annals of Tourism Research, 27(4):  1025–1048.
Kadiyali, V. and Kosová, R. (2013). Inter-industry employment spillovers from tourism inflows. Regional Science and Urban Economics, 43(2): 272–281.
Proenca, S. and Soukiazis, E. (2008). Tourism as an economic growth factor: A case study for southern European countries. Tourism Economics, 14(4): 791–806.
Song, Y. (2013). Poverty reduction in China: The contribution of popularizing primary education. China & World Economy, 20(1): 105–122.
Li. H., Li C.J., Li. G. and Careym, G. (2016). Tourism and regional income inequality: Evidence, from China, Annals of Tourism Research, 58: 81–99.

Keywords

References

  1.  افلاطونی، عباس (1394).  تجزیه و تحلیل آماری باEviews در تحقیقات حسابداری و مدیریت مالی، انتشارات ترمه، تهران.
  2.  جعفری، صمیمی احمد و خبره شیما (1394). اثر گردشگری مذهبی بر رشد اقتصادی در استان‌های ایران، فصلنامه جغرافیای فضای گردشگری، دوره 4، شماره15: 103-85.
  3. 3.      خاکسار آستانه، حمیده و علی، رهنما (1394). بررسی رابطه بین گردشگری، توزیع عادلانه درآمدها در اقتصاد ایران، کنفرانس ملی ایده­های نوین در کشاورزی و محیط زیست، موسسه حامیان زیست اندیش محیط آرمانی، اردبیل.
  4.  دایی‌کریم­زاده، سعید و شاکرمی، محبوبه السادات (1389). بررسی اثر گردشگری بر نابرابری درآمدی: مطالعه موردی کشورهای گروه D-8 طی دوره زمانی 1990-2005، همایش منطقه‌ای صنعت توریسم.
  5.  راسخی، سعید، محمدی، ثریا (1396). اثر گردشگری بر توزیع درآمد برای کشورهای دی هشت، فصلنامه مجلس و راهبرد، دوره24، شماره 90 : 336 -310.
  6.  رضاقلی‌زاده مهدیه (1395). تاثیر گردشگری بر مثلث فقر، نابرابری و رشد اقتصادی، فصلنامه مطالعات مدیریت گردشگری، دوره یازدهم، شماره 36: 160-125.
  7.  رضاقلی‌زاده مهدیه، آقایی، مجید و عیسی­زاده، روشن (1395). توریسم بین المللی و نابرابری درآمدی: مطالعه موردی کشورهای عضو کنفرانس اسلامی، فصلنامه جغرافیا، دوره14، شماره49:  315-296.
  8.  سبحانی، حسن و درویشی، باقر (1384). بررسی مزیت‌های نسبی و تحلیل ساختار اشتغال در استان ایلام،  مجله تحقیقات اقتصادی، شماره137: 187-159.
  9.  صباغ کرمانی، مجید (1379). تمرکز اشتغال در فعالیت‌های صنعتی استانهای کشور و کاربرد مدل اقتصاد پایه، موسسه مطالعات و پژوهش‌های بازرگانی، فصل‌نامه پژوهشنامه بازرگانی، شماره 17: 86-63
  10.  مرکز آمار ایران، طرح حساب تولید استان‌های کشور، سال‌های مختلف.
  11.  مرکز آمار ایران، سالنامه آماری کشور، سال­های مختلف.
  12.  مصطفوی، سیدمهدی، هوشمند محمود و محقق، اکرم(1392). بررسی اثرات نابرابری بر توزیع درآمد در کشورهای منتخب در حال توسعه، اولین همایش گردشگری و طبیعت‌گردی در ایران زمین.
  13. Akai, N. and Sakata, M. (2005). Fiscal decentralization, commitment, and regional inequality: Evidence from state-level, cross-sectional data for the United States. CIRJE discussion paper 315. University of Hyogo and Osaka International University.
  14. Alam, M. S. and Paramati, S. R. (2016).The impact of tourism on income inequality in developing economies: Does Kuznets curve hypothesis exist? Annals of Tourism Research, 61:111–126.
  15. Bartik, T. J. (1991). Who benefits from state and local economic development policies? Books from Upjohn Press.
  16. Blake, A., J. S. Arbache, M. T. Sinclair and V. Teles (2008). Tourism and
    Poverty Relief, Annals of Tourism Research, 35(1): 107-126.
  17. Bonet, J. (2006). Fiscal decentralization and regional income disparities: Evidence from the Colombian experience. The Annals of Regional Science, 40(3): 661–676.
  18. Goymen, K. (2000). Tourism and governance in Turkey. Annals of Tourism Research, 24(4):1025–1048.
  19. Haddad, E. A., Porsse, A. A. and Rabahy, W. (2013). Domestic tourism and regional inequality in Brazil. Tourism Economics, 19(1): 173–186.
  20. Hoshino, M. (2011). Measurement of GDP per capita and regional disparities in China, 1979–2009. Discussion paper series. Research Institute for Economics and Business Administration, Kobe University.
  21. Kadiyali, V. and Kosová, R. (2013). Inter-industry employment spillovers from tourism inflows. Regional Science and Urban Economics, 43(2): 272–281.
  22. Krakover, S. (2004). Tourism development centers versus peripheries: The Israeli experience during the 1990s. International Journal of Tourism Research, 6(2): 97–111.
  23. Lee, J. E. (2006). Inequality and Globalization in Europe, Journal of Policy Modeling, 28(7): 791-796.
  24. Lessmann, C. (2009). Fiscal decentralization and regional disparity: Evidence from cross-section and panel data. Dresden discussion paper in economics, No. 08/09.
  25. Liargovas, P., Giannias, D. and Kostandopoulos, C. (2007). An assessment of the community support framework (CSF) funding towards the tourist sector: The case of Greece. Regional and Sectoral Economic Studies, 7(1): 47–66.
  26. Li. H, Li Chen. Jason, Li. Gang, Goh. Carey. (2016). Tourism and regional income inequality: Evidence, from China, Annals of Tourism Research, 58: 81–99.
  27. Lyons, T. P. (1991). Interprovincial disparities in China: Output and consumption, 1952–1987. Economic Development and Cultural Change, 39(3): 471–506.
  28. Masse, P. (2001). Trade, Employment and Wages: A Review of the iterature, Human Resources Development Canada.
  29. Massidda, C. and Etzo, I. (2012). The determinants of Italian domestic tourism: A panel data analysis. Tourism Management, 33(3):  603–610.
  30. Proenca, S. and Soukiazis, E. (2008). Tourism as an economic growth factor: Acas: 791–806.
  31. Qiao, B., Martinez-Vasquez J. and Xu, Y. (2002) Growth and equity trade off in decentralization policy: China’s experience. Working paper, 02-16. Andrew Young School of Policy Studies, Georgia State University, Atlanta.
  32. Seckelmann, A. (2002). Domestic tourism—A chance for regional development in Turkey? Tourism Management, 23(1): 85–92.
  33. Sinclair, M. T. (1998). Tourism and economic development: A survey. The Journal of Development Studies, 34(5): 1–51.
  34. Song, Y. (2013). Poverty reduction in China: The contribution of popularizing primary education. China & World Economy, 20(1): 105–122.
  35. Stabler, M. J., Sinclair, A. and Papatheodorou, M. T. (2010). The economics of tourism. Abingdon: Routledge.
  36. Wei, Y. D. (2015), Spatiality of regional inequality, Applied Geography, 61: 1-10.
  37. Wen, J. and Tisdell, C. (1996). Spatial distribution of tourism in China: Economic and other influences. Tourism Economics, 2(3): 235–250.
  38. Williams, A. and Shaw, G. (Eds.). (1991). Tourism and economic development: Western European experiences. London: Belhaven Press.
Journal of Tourism Planning and Development
Volume 6, Issue 22
December 2017
Pages 8-29

Files

Share

How to cite

Statistics