ABSTRACT

Empirical work on the relationship between tourism development (TD) and human development (HD) has been very scant, particularly for Africa. This study assesses the empirical link between TD and HD in the case of Mauritius, using dynamic time series analysis, namely a vector autoregressive framework (VAR) which accounts for dynamism and endogeneity in the tourism development–human development index (HDI) nexus, over the period 1988–2016. Results show that TD has a positive and significant influence on HD in the long run and that HD is an important element in TD as well, confirming the existence of a bicausal relationship. Analysis of the short-run estimates revealed that whilst tourist arrivals influence HD, the reverse does not hold true.