Tourism specialization, economic growth, human development and transition economies: The case of Poland

Abstract

This study examines the relationship between tourism specialization economic growth, and human development in a transition economy. It proffers a conceptual link between tourism specialization and human development through a division of labor framework. Dynamic comparative advantage, Sen’s capability approach, and the translog production function characterize the conceptual relationship. The Limited Information Maximum Likelihood (LIML) estimates this relationship’s nature in the case of Poland. Tourism specialization has a shortterm effect on economic growth and a negative and indirect link to human development. Economic growth seems the channel that supports human development expansion, indicating short- and long-term significant, positive effects. Human capital reveals a U- shape pattern in its relationship with economic growth and human development. The study’s implications are two testable propositions and two policy options suggesting tourism specialization’s potential impact on private and public incomes, which are relevant developmental channels in transition economies.