Tourism and Economic Misery: Theory and Empirical Evidence from Mexico

Abstract

The misery index (MI) was devised to summarize the most evident costs for a society, attempting to objectively measure the loss in general welfare. It has been remarked in the literature that economic growth exerts a negative impact on the MI; however, analyses of this relationship in the tourism field have been neglected. This study assessed the effectiveness of the tourism sector at improving welfare conditions by measuring the impact of tourism GDP on the misery index and providing a theoretical framework for the relationship between tourism and the MI. A quantitative analysis was conducted using quarterly time series data for the period 2005Q1–2021Q2. Firstly, the existence of a long-term relationship was tested by using the Toda–Yamamoto procedure, and secondly, by applying linear and nonlinear ARDL models. The main results show that tourism can help to reduce the loss of welfare mirrored by the MI. These findings have policy implications, as they provide evidence that expanding the tourism sector counters the MI, and, consequently, the economic malaises derived from it.

Exploring the Nexus between Employment and Economic Contribution: A Study of the Travel and Tourism Industry in the Context of COVID-19

“…Before the pandemic, tourism development was utilized to generate significant advantages for the macro-level economy, such as enhancing foreign receipts, stimulating service exports, and playing a crucial part in driving growth in the domestic economy through tourism-led initiatives (Sun et al 2022;Brida et al 2016). The tourism industry constitutes a vital source of income and employment (Kavya Lekshmi and Mallick 2022;Navarro-Chávez et al 2023;Sánchez López 2024). Furthermore, tourism has a positive impact on currency circulation, employment rates, balance of payment, and investment in the development of necessary infrastructure, all of which facilitate the execution of tourism-related activities.…”