An Analysis of Cross-Sectoral Economic Dynamics in Timor-Leste: Integrating Sustainable Tourism, the Informal Economy, and Cultural Influences

Abstract

This study analyzes and synthesizes the findings of three research reports funded by the INCT (Instituto Nacional de Ciências e Tecnologia) in 2024, focusing on the socio-economic dynamics of Timor-Leste. The paper offers a novel, cross-sectoral analysis that synthesizes the dynamics of the informal economy, cultural influences, and emerging economic opportunities. Using a qualitative literature review methodology, this research integrates insights from reports on dive tourism, cultural influences on family finances, and the informal economy of women. The synthesis reveals that development in Timor-Leste is a closely interconnected process, where the sustainability of new economic sectors depends on how structural challenges (such as the lack of informal sector regulation) and socio-cultural barriers (like the financial burden of traditions) are managed. Overall, this study concludes that sustainable progress requires a holistic strategy that integrates economic, social, and cultural policies, rather than treating them as separate domains.