Tourism, transport infrastructure and income inequality: A panel data analysis of China

This study investigated the dynamic relationship between tourism, transport infrastructure, and income inequality using the novel panel data of China over 2000-2018. The results show the bidirectional Granger causality between highway and tourism and a unidirectional Granger causality running from railway to tourism for the national sample. Tourism significantly affects China's income inequality; however, this impact is minimal. Besides, tourism and transport infrastructure have a synergy effect on China's income inequality. Given the importance of tourism and transport infrastructure to economic growth in many developing countries, this study is conducive to broader debates over the role of transport infrastructure in tourism-induced inclusive growth in its policy implications for national development strategies and equitable development.