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Impacts of tourism and fiscal expenditure on remote islands in Japan: a panel data analysis

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Japan consists of many small inhabited islands in addition to four main islands. We examine the impact of fiscal expenditure and the number of tourists on per capita taxable income in remote islands using panel data analyses. The results show that both fiscal expenditure and population size have significant positive impacts on per capita taxable income, whereas the number of tourists does not have statistically significant impact. They indicate that tourism development would not work as a substitute for financial support from the government. In other words, continuous financial support may be needed to maintain the islands' economies.
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Document Type: Research Article

Affiliations: 1: Graduate School of Science and Technology, Kobe University, Kobe, Japan 2: Graduate School of Economics, Osaka University, Toyonaka, Osaka, Japan

Publication date: 2009-03-01

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