Re-examining the tourism-led growth nexus and the role of information and communication technology in East Asia and the Pacific

This study revisits the tourism-led growth discourse and differs from the existing literature to examine if information and communications technology (ICT) moderates the relationship between tourism and economic growth in East Asia and the Pacific. Using data on 33 selected countries, the study deploys the Driscoll and Kraay (1998) [1] panel spatial correlation consistent (PSCC) approach, Machado and Santos Silva (2019) [2] method of moments quantile regression (MMQR) and Arellano and Bond (1991) [3] generalized method of moments (GMM) technique. Using a composite ICT index on four indicators ((mobile phones, fixed telephones, fixed broadband, and secured internet servers) derived from the Principal Component Analysis (PCA), the results which are mostly consistent across the three estimation methods reveal, among others, that (1) ICT moderates the tourism-growth path and the effect is positive and statistically significant; (2) the moderation effect is consistently positive across all quantiles of Q(0.25), Q(0.50) and Q(0.75); (3) the results are sustained when omitted variables (growth enablers) – institutions, R&D, and human capital – are accounted for. Policy recommendations are discussed.