The relationship between governance structure and tourism development in China: Evidence from time and frequency domains

Abstract

AbstractThe purpose of this study is to examine the relationship between governance structure and tourism growth in China. This study examines the worldwide governance indicators’ correlation with tourism development (TD) through the time and frequency approach. The sample used in this study covers the duration from 2002Q1–2019Q4; the connection among the variables under consideration, named corruption control, political stability and absence of violence/terrorism, the rule of law, voice and accountability and regulatory quality, is examined individually with respect to TD. The outcome of the study highlights the considerable importance of governance structure indicators in developing the tourism sector. Moreover, the results verify causal connections among the time‐series of the variables under consideration, pointing towards the dynamic nature of their influence. Based on the results, this study stresses the imperative role of government and authorities in improving the quality of governance. Moreover, governance indicators are crucial for economies as they portray the reputation and image of a country, therefore interesting international tourists and strengthening the tourism sector. Additionally, the results not just emphasize the significance of a strong governance structure but also call for a strategic plan which fosters TD in the upcoming years.