The asymmetric effects of medical tourism and information technology on economic growth: evidence from panel quantile regression

Abstract

Medical tourism is a sub-segment of tourism that is lucrative for recipient countries. Estimated at US$11.56 billion in 2022, the market value of medical tourism is projected to reach US$53.51 billion in 2028. Given the importance of that industry, this study attempts to contribute to the literature on medical tourism, information and telecommunication technology (ICT) and economic growth. Unlike previous related studies, we explore the asymmetric effects of medical tourism and ICT on economic growth using panel quantile regression, using a balanced 2013–2021 panel sample across 48 countries. To enhance robustness and reliability, our growth model accommodates various control variables (e.g. capital, population growth, energy consumption). We found that although medical tourism and ICT contribute significantly to economic growth, this effect tends to be asymmetric. Moreover, the effect of ICT is greater in low- and middle-income countries, whereas the effect of medical tourism is greater in upper-middle-income countries.