Effect of Tourism Building Investments on Tourist Revenues in China: A Spatial Panel Econometric Analysis

The development of tourism greatly promotes China's economic growth, and tourism buildings are a core component of tourism industry. From the perspective of spatial panel econometrics, this study verifies the spatial relevance between tourism building investments and tourism economic growth in China. It is verified that the development of China's tourism industry possesses a significant spatial clustering effect. Since the coefficient of capital is greater than that of labor, the tourism industry is primarily a labor-intensive industry in China. Tourism building investments positively and significantly affect tourism revenue which is affected by the levels of manufacturing and human capital. Robust tests are provided by separating the regions and policy implications are offered.