Cure-all or curse? A meta-regression on the effect of tourism development on poverty alleviation

The purpose of this study is to synthesize the overall effect size of tourism on poverty alleviation and to unveil underlying factors explaining the heterogeneity of this effect size across estimates. Using a rigorous meta-analysis based on 298 estimates extracted from 33 studies, we calibrate a combined effect size of −0.14 with a 95% confidence interval of [-0.23, −0.05], indicating that tourism moderately reduces poverty. A meta-regression demonstrates that the effect size of the tourism–poverty nexus is susceptible to several factors, such as poverty and tourism measures, focal countries’ development level, and endogeneity treatment. In particular, the results show that use of the Gini coefficient, a popular proxy for the poverty gap, can unexpectedly underestimate the negative effect size. Moreover, funnel plot and Galbraith plot demonstrate that researchers are apt to report a positive tourism–poverty nexus in the literature. Lastly, research and policy implications are provided.