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Publication Date


Document Type

Honors Project




Tourism, Island-Economic conditions, States, Small-Economic conditions, Economic development, Development, Small-island economies


The purpose of this paper is to provide an empirical analysis the impact of a globally expanding tourism industry on the development of Small Island Developing States (SIDS). This study begins with a brief review of literature around the theme of a tourism-growth hypothesis. After conducting panel data regressions, this study concludes that expansion in tourism is correlated with increases in the rate of GDP growth and indeed Granger-causes economic growth in SIDS. This effect does not differ significantly by geographic location. The study also finds evidence that tourism makes a positive contribution to economic development, an effect that is amplified by improvements in literacy and health and an increase in an island's openness to trade. However, due to an insignificant Granger-test, this study cannot conclude that tourism has caused economic development, as measured by the rate of under-five mortality in these small islands.




iv, 46 p. Honors project-Smith College, Northampton, Mass., 2012. Includes bibliographical references (p. 38-42)