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Tourism Intensity and Economic Prosperity: A Cross-Country Regression Analysis
Built a dataset of 156 countries by merging World Bank and Our World in Data indicators, then used multiple linear regression in R to test whether tourism intensity predicts GDP per capita and national poverty rates. Log-transformed skewed variables and validated the models with residual plots, Q-Q plots, Cook’s distance, and VIF. Tourism intensity was a significant predictor in both models (R² = 0.72 for GDP, 0.59 for poverty). The weaker poverty result suggests tourism-driven growth doesn’t fully reach residents.