This study investigates the moderating role of digitalization in the relationship between tourism specialization and capital misallocation across 48 emerging economies from 2011 to 2024. Utilizing a two-way fixed effects panel regression framework, we provide empirical evidence that while excessive reliance on the tourism sector exacerbates capital distortion, the advancement of information and communication technology (ICT) infrastructure serves as a critical stabilizer. The results indicate that digitalization reduces information asymmetry and speculative investment behavior, thereby facilitating a more efficient distribution of capital across productive sectors. Furthermore, a threshold effect analysis suggests that the mitigating benefits of technology are most pronounced once a nation achieves a specific level of digital maturity. These findings imply that for emerging markets, transitioning toward a digital-first development model acts as an important counterweight to the tourism resource curse, thereby supporting long-term macroeconomic stability. The research offers a novel perspective on how digital transformation can help manage the structural investment traps often inherent in tourism-led growth strategies.
Wang et al. (Thu,) studied this question.
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