Agglomeration density and tourism development in China: An empirical research based on dynamic panel data model

To explain the significant disparity of tourism development across Chinese provinces, this paper conducts a dynamic panel data analysis of tourism development in China using statistical data of Chinese provincial tourism industry for the 2000–2009 periods. The estimated results provide empirical evidence on the relationship between the agglomeration and development of Chinese provincial tourism in firm level. The econometric analysis shows that the tourism density in agglomeration has a positive influence on local tourism development. It appears that the variance of tourism development across Chinese provinces can be explained by the differences in the density of tourism economic activities.

► Agglomeration has become significant phenomenon of Chinese tourism industry.
► Density represents multi-dimensions and dynamic mechanism of tourism development.
► Dynamic Panel Data Model is appropriate and adopted in this paper.
► Agglomeration density has positive effect on Chinese tourism development.