The impact of tourism on entrepreneurship in developing countries

Abstract

As an important factor of production, economist traditionally considers entrepreneurship as a key factor for encouraging economic growth, especially in developing countries. With tourism is one of the fastest growing economic sectors and closely linked to development of most developing countries, this study aims to examine the effect of tourism on entrepreneurship by using panel data of 56 developing countries for the period between 2010 and 2017. Using a panel data technique, namely the generalized method of moments (GMM) estimator, the results suggest that tourism play an important role in improving the level of entrepreneurship in developing countries, which are robust across different specification. Therefore, governments should aim to further develop the tourism industry to support a more sustainable entrepreneurship development in developing countries.