Structural Change and Economic Growth in Small Island Tourism Countries

Abstract

ABSTRACT Over recent decades tourism has fostered intense economic growth in many small and/or island countries. However, the relationship between growth, tourism and economic size of these countries has never been satisfactorily explained. This paper aims firstly to analyse the determining factors of the intense tourism development observed in small countries; and secondly, to provide a framework which helps to explain why small countries specialised in tourism have recorded relatively high economic growth rates over recent decades. Structural change at a sectoral level is the mechanism used to explain the rapid growth of small tourism countries. However, the lack of available data means that the empirical results are not conclusive.