Urban-rural imbalance and Tourism-Led Growth in China

This study investigates the structural effect of tourism on alleviating the urban-rural dichotomy and the moderating effect of a dual urban-rural economic structure on Tourism-Led Growth (TLG). A theoretical framework followed by an empirical analysis based on relevant data from 31 Chinese provinces for the years 1998-2013 is presented. The main conclusions of the econometric analysis are that tourism growth can help reduce the urban-rural gap in China, but that the larger the gap between urban and rural economies, the less substantial is the influence of tourism on economic growth in China. Tourism may play an important role in Central-Western and Inland China, but their relatively greater urban-rural economic gap may threaten the positive effect of tourism.