Causality Relationship Between Foreign Direct Investment and Tourism

Šatrović, Elma; Muslija, Adnan

doi:10.18092/ulikidince.418132

Cited by 16 publications

(17 citation statements)

References 8 publications

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“…The present study provides primary, empirical evidence of the tourism-FDI nexus. While some contemporary studies (Satrovic and Muslija, 2018;Tomohara, 2016;Yazdi et al, 2017) support the general notion of the tourism-FDI nexus, it, however, appears as though the present study is one of the first to do so across a 'deconstructed' FDI spectrum of market-, resource-, efficiency-and strategic asset-seeking FDI. In the absence of comprehensive studies that have examined all four tourism typologies collectively, the present study makes a significant contribution, albeit limited to Zimbabwe of the potential influence of tourism on FDI.…”

Section: Discussioncontrasting

confidence: 54%

“…In the case of Hong Kong–China, the ability of the country to sustain its 10.4% growth rate between 2000 and 2014 is attributed to strategic investment in the country’s tourism-oriented infrastructure that included air, and maritime platforms, as well as man-made attractions such as Hong Kong Disneyland (Prideaux and Tse, 2015). Interestingly, a positive causal relationship was established between inbound tourism and FDI in the cases of top tourism destinations including France, Germany, Spain and Italy (Arain et al, 2020), whereas other studies have determined a unidirectional relationship (reverse causal relationship) within the tourism-FDI nexus in the cases of China (Tang et al, 2007), India (Selvanathan et al, 2012) and 113 other countries including the African nations of Algeria, Cameroon, the Congo, Egypt and Zimbabwe (Satrovic and Muslija, 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

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The tourism – Foreign direct investment nexus: Empirical evidence from Zimbabwe (2009–2015)

Matiza

Perks

2021

Tourism Economics

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The extent of research into the determinants of foreign direct inflows to particular locations is expansive and diverse; however, little is known of the influence of country images as non-financial determinants on the inflow of foreign capital. In contributing to this body of knowledge, this article aims to explore the influence of tourism as a non-financial nation image determinant of foreign direct investment (FDI) in Zimbabwe. The relationship between tourism and the four distinct forms of FDI opportunities in Zimbabwe, market-, resource-, efficiency- and strategic-asset seeking is examined. Empirical data were generated from a final purposively sampled survey population of 305 foreign investors who had applied to invest in Zimbabwe between January 2009 and April 2015. Multiple statistical techniques were employed including exploratory factor analysis and multiple regression using STATISTICA 12 software. As it emerged, eight variables were identified as constituting Zimbabwe’s tourism nation brand image. Empirically, the results of this article affirm the influence of tourism as a non-financial determinant of market-, efficiency- and strategic asset-seeking FDI opportunities in Zimbabwe.

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Section: Discussioncontrasting

confidence: 54%

Section: Literature Reviewmentioning

confidence: 99%

The tourism – Foreign direct investment nexus: Empirical evidence from Zimbabwe (2009–2015)

Matiza

Perks

2021

Tourism Economics

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“…The findings also confirmed the presence of one-way causality from FDI and tourism price to tourism in both short and long run. Satrovic and Muslija (2018) investigated the foreign direct investment and tourism's association in 113 countries using GMM estimates from 1995 to 2015. The results confirmed that FDI has significant direct impact on tourism, while tourism causes FDI.…”

Section: Literature Reviewmentioning

confidence: 99%

Asymmetric Impact of FDI and Exchange Rate on Tourism: Evidence From Panel Linear and Nonlinear ARDL Model

Munir

Iftikhar

2021

Sage Open

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This study analyzes the long run as well as short run linear and nonlinear impact of foreign direct investment (FDI) and exchange rate on tourism in South Asian countries. The study uses annual panel data of five South Asian countries that is Bangladesh, India, Nepal, Pakistan, and Sri Lanka from 1995 to 2019 and applies panel linear autoregressive distributive lag (ARDL) and nonlinear autoregressive distributive lag (NARDL) methodology to analyze the long run and short run relationship among the variables. Results show that an increase in FDI and appreciation of exchange rate contracts tourism, while a decrease in FDI and depreciation of exchange rate expands tourism in the long run. Both FDI and exchange rate shows asymmetric behavior with tourism in the long run in South Asian countries. Results of individual countries show that FDI has asymmetric impact on tourism in Bangladesh, India, Pakistan, and Sri Lanka in the short run, while exchange rate has asymmetric impact on tourism in Bangladesh, India, Nepal, and Pakistan in the short run. Moreover, unidirectional causality exits from FDI, exchange rate, partial negative sum of FDI, and partial positive sum of exchange rate to tourism as well as from tourism to partial positive sum of FDI and partial negative sum of exchange rate. Therefore, there is a need to expand tourism sector through attracting FDI in tourism sector, while FDI attraction and tourism development must be well coordinated among different departments as well as maintain exchange rate at a reasonable level to encourage international tourism.

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“…Generalized method of moments Dynamic will be incorporated into the model by formalizing model equation as AR (1) model as following (Eq. 1) (Satrovic and Muslija, 2018: − error term while denotes intercept that is period specific.…”

Section: Methodsmentioning

confidence: 99%

Moderating Effect of Economic Freedom on the Relationship Between Human Capital and Shadow Economy

Šatrović

2019

Trakya Üniversitesi Sosyal Bilimler Dergisi

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The empirical analysis of the relationship between human capital and shadow economy in the presence of economic freedom is conducted in this paper. Annual panel data are collected in the period 1999-2013 for the sample of 34 countries. The results of linear static and dynamic panel data estimators suggest an impact of economic freedom that is not significant. ARDL framework suggests a significant negative impact of human capital on shadow economy only in the long-run indicating that more educated workforce tends to avoid informal economic activities. Short-run impact is not found to be significant. This result is expected since human capital is considered to be a classic time-variant covariate, i.e. any change requires longer time period. The extended model suggests a significant negative impact of human capital only in the long-run. Economic freedom is not found to be significant in both, short-and the long-run. However, it is important to emphasize that the coefficient with moderator is significant and positive in the short-run indicating that economic freedom supports more educated workforce in their intention to decrease informal economic activity. Hence, as a policy implication there is a necessity to contribute to economic freedom in order to increase the human capital of workforce who will tend to decrease shadow economy.

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Causality Relationship Between Foreign Direct Investment and Tourism

Cited by 16 publications

References 8 publications

The tourism – Foreign direct investment nexus: Empirical evidence from Zimbabwe (2009–2015)

The tourism – Foreign direct investment nexus: Empirical evidence from Zimbabwe (2009–2015)

Asymmetric Impact of FDI and Exchange Rate on Tourism: Evidence From Panel Linear and Nonlinear ARDL Model

Moderating Effect of Economic Freedom on the Relationship Between Human Capital and Shadow Economy

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