Tourism and Economic Growth: Assessing the Significance of Sustainable Competitiveness Using a Dynamic Panel Data Approach

This study explores the tourism-led growth hypothesis (TLGH) by assessing the moderating role of sustainable competitiveness across 203 countries from 2000 to 2019. Utilizing the system generalized method of moments (SYS-GMM) approach, the analysis confirms that tourism contributes positively to economic growth, with variations observed across different income levels and degrees of competitiveness. The findings indicate that both low- and high-income countries experience enhanced economic benefits from tourism when competitiveness is prioritized. The study underscores the importance of developing sustainable competitiveness strategies as a means to amplify tourism's positive effects on economic growth. These insights provide a valuable basis for policymakers aiming to leverage tourism as a catalyst for sustainable economic development across diverse national contexts.