ABSTRACT
Recent studies found that tourism can mitigate the shadow economy, but its effectiveness in a specific country remains uncertain. To fill the research gap, this study investigates the relationship between tourism and the shadow economy in China based on province level data for 2000-2016. The results reveal that the shadow economy will be adversely affected by tourism. Moreover, regional heterogeneity analysis indicates that in central and western regions of China, tourism is more effective in suppressing shadow activities. The findings contribute to a policy reference for mitigating the shadow economy and regulating tourism development.
Acknowledgments
We thank especially the Editor Prof. Kaye Chon and two anonymous referees for very constructive remarks and suggestions. They make some pertinent comments on the previous version of this article. Nevertheless, any shortcomings that remain in this research paper are solely our responsibility.
Disclosure statement
No potential conflict of interest was reported by the author(s).