Research on the Impact of Tourism Industry Development on Economic Growth in Yunnan Province

Siwei  Wang; Ke  Nunthasen; Waraporn  Nunthasen; Nirote  Sinnarong

doi:10.60027/iarj.2025.285850

Authors

Siwei Wang Faculty of Economics, Maejo University, Chiang Mai, Thailand https://orcid.org/0009-0003-1220-4334
Ke Nunthasen Faculty of Economics, Maejo University, Chiang Mai, Thailand https://orcid.org/0009-0001-0801-1201
Waraporn Nunthasen Faculty of Economics, Maejo University, Chiang Mai, Thailand https://orcid.org/0009-0009-1302-6211
Nirote Sinnarong Faculty of Economics, Maejo University, Chiang Mai, Thailand https://orcid.org/0009-0001-2419-6023

DOI:

https://doi.org/10.60027/iarj.2025.285850

Keywords:

Tourism Industry Development, Economic Growth, Multiple Linear Regression Models, Investment in Fixed Assets, Human Capital

Abstract

Background and Aim: The tourism industry contributes significantly to economic growth by generating jobs, helping local small businesses, and increasing foreign exchange earnings. Furthermore, it encourages infrastructure development and investment, enhancing the economy's overall resilience and sustainability. This study examines the impact of tourism industry development on economic growth in Yunnan Province. It aims to identify the role of tourism and other key economic factors in shaping regional economic performance and provide empirical insights for policymakers.

Materials and Methods: A multiple linear regression model is employed, using data from Yunnan Province covering the period 1994–2023. Five variable tourism industry developments, fixed asset investment, human capital, industrial value added, and foreign direct investment (FDI), are selected for quantitative analysis.

Results: The findings indicate that tourism industry development, fixed asset investment, and human capital significantly contribute to economic growth, with human capital having the strongest effect. Industrial value added is negatively correlated with economic growth, suggesting a need for structural optimization. FDI has a positive but limited effect, highlighting inefficiencies in foreign capital utilization.

Conclusion: The study provides empirical evidence that tourism development plays a vital role in economic growth alongside investment and human capital. However, industrial restructuring and improved foreign capital utilization are necessary for sustained economic progress in Yunnan Province.

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