Tourism development and poverty alleviation in sub-Saharan African countries: an empirical investigation

Figures & data

Table 1: Tourism development and household welfare (poverty alleviation)

	Dependent variable: Household welfare
	Tourism Revenue			Tourist Arrivals
	Gini Coefficient Equation	Atkinson Index Equation	Palma Ratio Equation	Gini Coefficient Equation	Atkinson Index Equation	Palma Ratio Equation
Constant	476.1891***	237.8798*	189.921***	404.889***	154.662	147.769***
	(0.000)	(0.081)	(0.000)	(0.000)	(0.153)	(0.000)
Household welfare (−1)	0.6196***	0.6363***	0.6297***	0.6208***	0 .6581***	0.6588***
	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)
Tourism Revenue (TR)	0.0019	−0.0037	−0.0002	−	−	−
	(0.617)	(0.494)	(0.968)
Tourists Arrivals (TA)	−	−		16.4871***	14.889***	14.0246***
				0.000	0.000	0.000
Gini Coefficient (Gini)	−581.7991***	−		−435.19***	−	−
	(0.000)			(0.000)
Atkinson Index (Atkin)	−	−166.1126		−	23.23296	−
		(0.227)			(0.805)
Palma Ratio (Palma)	−	−	−10.257***	−	−	−3.1958
			0.000			0.281
Trade	−0.0968	−0.0594806	−0.1354	−0.4105	−1.1942	−0.3550
	(0.846)	(0.937)	(0.801)	(0.435)	(0.367)	(0.606)
y	0.196873***	0.1913***	0.1962***	0.1913***	0.1789***	0.1768***
	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)
Law	74.66306***	69.7209***	66.788***	78.960***	65.255***	75.196***
	(0.000)	(0.000)	(0.001)	(0.000)	(0.002)	(0.000)
Time Effects	Yes	Yes	Yes	Yes	Yes	Yes
AR(1)	0.0968	0.102	0.101	0.101	0.094	0.101
AR(2)	0.478	0.523	0.514	0.540	0.553	0.554
Sargan OIR	0.000	0.000	0.000	0.000	0.000	0.000
Hansen OIR	0.787	0.683	0.645	0.838	0.567	0.634
DHT for instruments
(a)Instruments in levels
Hansen test excluding group	0.314	0.132	0.253	0.421	0.156	0.170
Dif (null, H = exogenous)	0.849	0.892	0.740	0.854	0.752	0.804
(b) IV (years, eq(diff))
H excluding group	0.144	0.235	0.198	0.487	0.627	0.337
Dif(null, H = exogenous)	0.952	0.795	0.788	0.829	0.469	0.669
Fisher	25668.44***	93725.04***	86104.95***	4730.69***	7074.69***	5625.72***
Instruments	28	28	28	28	28	28
Countries	32	32	32	32	32	32
Observations	272	272	272	269	269	269

***,**,*: significance levels at 1%, 5% and 10% respectively. DHT: Difference in Hansen Test for Exogeneity of Instruments Subsets. Dif:

Table

Variables	Definitions of variables (Measurements)	Sources
Household welfare (HHW) - poverty alleviation	Real household consumption expenditure per capita	World Bank
Tourism Revenue (TR)	International tourism, receipts (US$ - millions)	World Bank
Tourist Arrivals (TA)	Number of international tourists’ arrival (millions)	World Bank
Gini Coefficient (Gini)	‘The Gini index is a measurement of the income distribution of a country's residents’.	GCIP
Atkinson Index (Artkin)	‘The Atkinson index measures inequality by determining which end of the distribution contributed most to the observed inequality’.	GCIP
Palma Ratio (Palma)	‘The Palma ratio is defined as the ratio of the richest 10% of the population's share of gross national income divided by the poorest 40%'s share’.	GCIP
Economic growth (y)	GDP per capita	World Bank
Rule of Law (Law)	Rule of Law
Trade	Exports + Imports (% of GDP)	World Bank

Table

Variables	Mean	Std. Dev.	Min	Max	Obs
HHW	1085.072	1022.406	219.6309	4588.564	309
TR	633.3347	1737.952	0.700	11202	315
TA	0.8970226	1.678049	0.005	9.592	310
Gini	0.5918543	0.0368007	0.4882732	0.8516453	319
Atkin	0.712901	0.060006	0.5098044	0.8326834	319
Palm	6.693619	1.55733	3.015978	14.43498	319
Y	1664.833	1838.601	300.5624	7864.253	320
Law	−0.6333558	0.5788884	−1.793081	0.6959755	320
Trade	69.79549	28.45263	30.88519	161.8937	318

Where:

HHW = poverty reduction - Real household consumption expenditure per capita

tr = Tourism revenue - International tourism, receipts (US$ - millions)

ta = Tourist arrivals - International arrivals (millions)

gini – Gini coefficient

artkin = Atkinson index

palm = Palma ratio

fd = Financial development (Domestic credit to private sector by banks as a % of GDP)

law = Rule of law

Table

	HHW	TR	TA	Gini	Atkinson	Palma	y	Law	Trade
HHW	1.0000
TR	0.5985	1.0000
TA	0.6374	0.8700	1.0000
Gini	0.4743	0.5689	0.4368	1.0000
Atkinson	0.3229	0.2368	0.1544	0.7861	1.0000
Palma	0.5180	0.4797	0.3932	0.9288	0.9160	1.0000
y	0.9501	0.5711	0.6060	0.4747	0.3543	0.5358	1.0000
Law	0.5175	0.2974	0.2786	0.2787	0.1560	0.3111	0.4804	1.0000
Trade	0.3083	−0.0870	−0.0951	0.0256	0.2657	0.1732	0.3994	0.1260	1.0000

HHW: House hold welfare (proxy for poverty reduction). TR: Tourism revenue. TA: Tourism arrivals. Gini: the Gini coefficient. Atkinson: the Atkinson index. Palma: the Palma ratio. GD: Financial development. Law: Rule of law.