Tourism, Democracy and Economic Growth in Africa

Abstract

While numerous studies have explored the determinants of economic growth, research on the impact of tourism and democracy on economic growth remains debated in both developed and developing countries. Furthermore, studies examining the moderating role of democracy in the tourism–economic growth relationship are particularly scarce. Achieving the Sustainable Development Goals (SDG-8) by 2030 requires a comprehensive understanding of the interplay between tourism, democracy and economic growth. This paper addresses this gap by analysing the moderating effect of democracy on the tourism–economic growth nexus in Africa from 2000 to 2020. Using the panel corrected standard errors (PCSE) estimation technique, the study finds that tourism fosters economic growth. Moreover, democracy positively moderates the impact of tourism on economic growth in Africa, with the marginal effect of tourism varying depending on the level of democracy. Accordingly, there are positive synergies from the interaction between democracy and tourism because while tourism promotes economic growth, democracy complements tourism to further promote economic growth. The study discusses the policy implications of these findings and suggests potential policy measures.