Informal Institution and Tourism Development: Insights From Confucian Culture

ABSTRACT As the cornerstone of traditional Chinese culture, Confucian culture significantly shapes personal values and behaviours. This study investigates the impact of Confucian culture on tourism development, from a supply‐side perspective, using a sample of 269 Chinese cities between 2013 and 2019. The baseline results, validated through endogeneity tests and robustness checks, consistently indicate a positive correlation between Confucian culture and regional tourism growth. Utilising a chained multiple mediation model, the study delineates the primary mechanisms, showing that Confucianism bolsters tourism innovation by elevating labour quality and capital investment, thus propelling tourism development. Furthermore, the heterogeneity analysis demonstrates the synergistic effect of Confucian culture with formal institutions in advancing tourism. However, the positive effects of Confucian culture on tourism are attenuated by the effects of other cultures. These findings significantly contribute to the literature and offer valuable managerial implications.