Effect of Tourism on Irrational Industrialization Causing Dutch Disease

Abstract

This paper discuss about the effect of tourism on irrational industrialization causing Dutch Disease. We use regression coefficients of the SYS-GMM regression method then analyze the industrial structure effects of tourism development of eight (8) COMESA countries members during the period of 2003 to 2017, applying panel data approach. The result demonstrates that Dutch disease effect are significant and the temporal and spatial differences are obvious. This brings us to conclude that Tourism sector needs support and directive from the government, and decision maker ,they should seek for what help the Tourism to avoid any anomaly in the economy.

Keywords: Tourism, COMESA countries, Dutch disease

DOI: 10.7176/JESD/13-6-06

Publication date:March 31^st 2022