Investigating the Effect of Tourism on the Triangle of Poverty, Inequality and Economic Growth

Along with the evolution of the relationship between tourism and economic growth, other aspects of economic welfare have been more attractive rather than economic growth. In this study, we will test the causal relationship among tourism, economic growth, poverty and inequality in Iran by adding tourism to Triangle of Poverty, Economic Growth and Inequality to answer this question: "Is tourism development as an important factor of mentioned triangle to achieve a lower level of poverty?”.We test this relationship by applying the Generalized Method of Moment techniques and by testing alternative existing theories in the period of 1350 until 1391. Our empirical findings show that tourism has a positive effect on Iran’s economic growth and also reduces inequality and poverty in this country.