The relationship between tourism and equality in income distribution in developed and developing countries: An application of panel VAR model

Abstract

The purpose of this study was to examine the relationship between the tourism and equitable distribution of income for the developed and developing countries using Panel VAR. The results indicate that economic growth and the first lag (one-year lag) of international tourism income negatively affect the poverty index in developed and developing countries. Impulses due to economic growth and poverty index have the greatest effect on international tourism income so that its effect remains after 10 periods permanently.