The synergies between human development, economic growth, and tourism within a developing country: An empirical model for ecuador

This study uses a co-integration methodology with an error-correction model to assess the dynamic relationship between human development, economic growth, and tourism in Ecuador. There have been numerous studies explaining how economic growth can affect various dimensions of human development. Further, additional arguments have been generated to indicate that tourism may also be the vehicle with which to impact human development and economic growth. However, the literature on the nexus between human development, economic growth, and tourism is riddled with mixed results. The results from this study suggest the presence of three unique long-run relationships. First, tourism does not promote human development. Instead, it is the degree and measure of human development that promotes tourism by creating a lopsided relationship. Second, a virtuous cycle between human development and economic growth exists. Third, the study found a unidirectional causality supporting the economics-driven tourism growth, meaning that tourism growth is a product of economic growth but not vice versa. The study concludes with implications for tourism development in the case of Ecuador.