The role of tourism in escaping “the middle-income trap”

Abstract

During the last 50 years, many countries have struggled the middle income trap. The purpose of article is the analysis of tourism as factor in the state’s recovery from “the middle-income trap”. The economic development of Thailand, Turkey and Mexico, which are stuck in the trap and where the tourism sector occupies significant positions in GDP growth, is analyzed. Using the least-squares method (2SLS), іt has been empirically confirmed that tourism development in Turkey can drive the economy out of “the trap”, while in Thailand and Mexico, the manufacturing sector plays a significant role in economic growth, despite significant tourism revenues.