Dynamic interaction of tourism, finance, and institutions in explaining growth in Asia's little dragon economies

Abstract

This study attempts to investigate the role of institutions in enhancing the effect of tourism and financial development on economic growth in Asia using a panel sample from 1984 to 2016. Our findings reveal that tourism and finance are two important variables accountable for growth in our selected countries. Furthermore, our empirical results suggest that their effects on growth are enhanced by the level of institutional quality. Therefore, institutional reforms should thus precede tourism attraction and financial development policies used in these countries in an effort to enhance the benefits from the tourism and financial sector development on growth.