Effect of International Tourism on Poverty: Evidence from Developing and Emerging Countries

This article aims to determine the impact of international tourism on poverty in 28 developing and emerging countries from 2005-2020. The Driscoll-Kraay standard errors method was used in the quantitative analysis. Unlike previous studies, this study provides concrete answers to conflicting debates about tourism development and poverty reduction. Our results robustly conclude that international tourism helps to reduce poverty perspective in countries. Specifically, more enormous tourism revenues and higher numbers of international tourists will lead to lower poverty rates in host countries. In addition, the results also emphasize the role of institutional quality in poverty reduction. Research shows that good institutions in the host country help reduce poverty. These findings may provide policy implications regarding future tourism development and poverty reduction in developing countries and emerging economies.