Heritage and Territory: Tangible and Intangible Cultural Resources as Drivers of Regional Development in Croatia

Abstract

Abstract This paper investigates the relationship between cultural heritage, tourism demand, and regional development in Croatia using a spatial econometrics approach. A composite Cultural Heritage Index was created based on UNESCO and national material and immaterial cultural assets within the framework of the Horizon 2020 SmartCulTour project. The spatial autoregressive (SAR) model was employed to analyze the impact of cultural heritage and tourism demand on regional development across Croatian NUTS 3 regions while accounting for control variables such as gross value added and trade openness. The findings reveal that cultural heritage has a positive and statistically significant effect on regional development, both directly and indirectly. Tourism demand also plays a vital role in regional development, with the potential for enhancing positive spillover effects. These results contribute to the literature by quantitatively demonstrating the link between cultural heritage, tourism, and regional development in the Croatian context, providing valuable insights for policymakers to foster sustainable cultural tourism activities.

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