How fiscal decentralization stimulates inbound tourism: evidence from China

Exploring the impact of fiscal decentralization on inbound tourism is crucial for stabilizing the inbound tourism market and stimulating its development. This paper provides insightful answers to how fiscal decentralization promotes inbound tourism through multiple econometric models, drawing the following conclusions: First, fiscal decentralization significantly boosts inbound tourism, with transport conditions and openness also playing key roles. Second, inbound tourism performs similarly in regions with similar economic and tourism resource endowments, and fiscal decentralization is effective in both the region and its similar regions. Third, when fiscal decentralization exceeds a certain threshold, its role diminishes; however, when transport conditions cross the threshold, the advantages of fiscal decentralization are further accentuated.