Agglomeration density and tourism development in China: An empirical research based on dynamic panel data model

Abstract

To explain the significant disparity of tourism development across Chinese provinces, this paper conducts a dynamic panel data analysis of tourism development in China using statistical data of Chinese provincial tourism industry for the 2000–2009 periods. The estimated results provide empirical evidence on the relationship between the agglomeration and development of Chinese provincial tourism in firm level. The econometric analysis shows that the tourism density in agglomeration has a positive influence on local tourism development. It appears that the variance of tourism development across Chinese provinces can be explained by the differences in the density of tourism economic activities.