Tourism-led growth hypothesis (TLGH) in Africa: Does institutional quality matter?

Purpose: While the tourism–growth nexus is one of the better researched themes in both tourism and economics literature, there is limited evidence on how institutional quality affects this link, especially in the context of the developing world. To address this gap, this study aims to investigate the tourism-led growth hypothesis (TLGH) through the lens of institutional quality, drawing on evidence from African economies. Design/methodology/approach: This study adopts a longitudinal design, involving panel data on 43 countries over an 18-year period, and the data were analyzed using the difference generalized method of moments model. Findings: Results indicated that international tourism earnings contributed to economic growth in the selected economies. However, institutional quality negatively moderated the tourism–growth relationship on the continent, particularly in low-income economies, while reinforcing this link in middle-income countries. Originality/value: This study provides new insights into how the TLGH varies across different levels of institutional quality and development.