Tourism and Economic Growth: Assessing the Significance of Sustainable Competitiveness Using a Dynamic Panel Data Approach

ABSTRACT This study explores the tourism‐led growth hypothesis (TLGH) by assessing the moderating role of sustainable competitiveness across 203 countries from 2000 to 2019. Utilizing the system generalized method of moments (SYS‐GMM) approach, the analysis confirms that tourism contributes positively to economic growth, with variations observed across different income levels and degrees of competitiveness. The findings indicate that both low‐ and high‐income countries experience enhanced economic benefits from tourism when competitiveness is prioritized. The study underscores the importance of developing sustainable competitiveness strategies as a means to amplify tourism's positive effects on economic growth. These insights provide a valuable basis for policymakers aiming to leverage tourism as a catalyst for sustainable economic development across diverse national contexts.