The present paper investigates whether tourism specialization is a viable strategy for development. We estimate … standard growth equations augmented with a variable measuring tourism specialization using instrumental variables techniques … for a large cross-section of countries for the period 1980-2002. We introduce an instrument for tourism based on the …

consumption volatility. Calibration of the model for pre and post financial reform in India provides support for the model's key …

focused on tail events, which yields evidence on these questions. The results, for India, do not suggest that financial …