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This study investigates the relationship between the degree of tourism specialization, domestic investment rate, and sustainable economic development for a sample of the top five East-Asian and Pacific countries with the highest concentration on tourism sector. The findings indicate that further specialization in tourism is likely to enhance the sustainability of economic growth only in the case of Macao and Malaysia. The analysis reveals interesting insights regarding the impact of changes in the respective rates of domestic investment and economic growth on the “relative GDP share of tourism sector” which have not been studied in the past literature.

Can Specialization in Tourism Enhance the Process of Sustainable Economic Development and Investment in East Asia and the Pacific?