How does financial inclusion influence tourism demand? Empirical evidence from emerging markets and developing economies

Gopalan, Sasidaran; Khalid, Usman

doi:10.1080/02508281.2022.2028084

Cited by 11 publications

(3 citation statements)

References 69 publications

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“…Study findings advocate that easy access to financial services offers efficiency in a financial settlement, especially in the case of currency conversion and electronic money transfer in rendering tourism services. The study findings are supported by the literature such as (Shi et al, 2020;Gopalan and Khalid, 2022;Xia et al, 2022). Innovation and financial inclusion are closely intertwined.…”

Section: Discussionsupporting

confidence: 82%

Nexus between environmental sustainability, good governance, financial inclusion, and tourism development in Bangladesh: Evidence from symmetric and asymmetric investigation

Islam

Mindia

Farzana

et al. 2023

Front. Environ. Sci.

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Over the past decade, tourism’s contribution to economic Section progress has emerged as an alternative avenue for socio-economic development, especially in the productive economy with natural beauty. On the other hand, the potential effects of tourism on the environment have also been unveiled in the literature, along with macroeconomic misbehavior due to erratic environmental changes. However, the study’s impetus is to inspect the reaction of tourism contribution to Bangladesh’s economy from 1991–2019 with ecological sustainability, good governance, and financial inclusion in the empirical assessment. With the implementation of both linear and non-linear frameworks, the present study has explored the elasticities of core explanatory variables on explained variables; for directional causality, the novel Fourier Toda and Yamamoto causality test has been executed. According to the combined cointegration test, Bangladesh has a long-run association between environmental sustainability, good governance, financial inclusion, and tourism development. Inferring from long-run symmetric and asymmetric cointegration, the test statistics revealed statistically significant at a 1% level, suggesting the long-run relations in the established empirical model. Considering the linear autoregressive disoriented lagged, the study established a negative and statistically significant linkage between environmental sustainably and tourism contribution, suggesting that the excessive inflows of carbon emission that environmental degradation dwindles the progress of tourism contribution. Whereas a positive and statistically significant influence runs from good governance and financial inclusion to tourism development, the suggestion of easy access to financial services and effective institutional activities prompts tourism activities, especially in the long-run. The asymmetric investigation established non-linearity in the empirical model for the long and short-run. In terms of asymmetric coefficients, the study unveiled the positive and negative shocks of environmental sustainability exposed negatively and statistically significant. In contrast, the asymmetric shocks of financial inclusion and good governance established positive and statistically substantial Bangladesh tourism development in the long and short-run. The directional causality assessment revealed bidirectional causality running between explanatory variables to tourism development.

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Section: Discussionsupporting

confidence: 82%

Nexus between environmental sustainability, good governance, financial inclusion, and tourism development in Bangladesh: Evidence from symmetric and asymmetric investigation

Islam

Mindia

Farzana

et al. 2023

Front. Environ. Sci.

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“…Gravity models are widely applied in economic literature to model international trade flows, international migration flows, and foreign direct investment flows (Anderson and Van Wincoop, 2003; Bergstrand and Egger, 2007; Eichengreen and Tong, 2007; Frankel and Romer, 1999; Head et al, 2010; Gil-Pareja et al, 2007; Karemera et al, 2000; Khalid, 2017; McCallum, 1995; Rose, 2000). Similarly, gravity models are extensively used in tourism literature, specifically for exploring determinants of international tourist flows and studying tourism demand (Fourie and Santana-Gallego, 2013; Gopalan and Khalid, 2022; Khadaroo and Seetanah, 2008; Khalid et al, 2020; Khalid et al, 2021a; Khalid et al, 2021b; Okafor et al, 2021d; Okafor et al, 2021e; Santana-Gallego et al, 2016).…”

Section: Model Data and Methodologymentioning

confidence: 99%

Do birds of a feather flock together? Analyzing environmental performance and tourist behavior using a gravity approach

2022

Self Cite

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This study examines whether international tourism flows are affected by differences in the environmental performance of origin and destination countries by conducting an empirical analysis with a gravity panel dataset of 169 origin countries and 157 destination countries from 2000 to 2015. Estimated results show that the difference between environmental performance of a country pair adversely affects international tourism flows. This implies that tourist behavior is particularly influenced by familiarity, behavior conformity, and the need for virtue-signaling. Results also suggest that better environmental performance of the destination relative to the origin, as captured by an overall environmental performance index or its sub-indices, lowers international tourism more than vice-versa. This effect potentially hinges on the tradeoff between functionality and the image of the international tourist destination. Policies that create an enabling milieu for sustainable tourism and environmental practices—such as ecolabeling and targeted advertising—would help attract more environmentally conscious tourists.

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“…Gautam and Bishnu studied tourism finance in Nepal and found that the financial industry not only promoted tourism development but also significantly contributed to the country's economic growth [18], and the same thing also happened in Bangladesh [19]. Gopalan and Khalid found that financial inclusion can nonlinearly boost tourism demand in emerging and developing countries [20]. In domestic research, Jiang and Hu analyzed the challenges faced by financial support for tourism development in specific locations in China, proposing measures to eliminate financial constraints and increase relevant financial support [21,22].…”

Section: The Relationship Between the Financial Industry And Tourismmentioning

confidence: 99%

How Digital Financial Inclusion Boosts Tourism: Evidence from Chinese Cities

Zhang,

Liu,

2023

JTAER

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It is crucial to explore the impact of digital financial inclusion on tourism for national economic development. This paper utilizes panel data from 256 prefecture-level cities in China between 2011 and 2019 to examine the influence of digital financial inclusion on tourism. The findings demonstrate that digital financial inclusion significantly contributes to the development of the tourism industry. Notably, its coverage breadth, depth of use, and level of digitalization also have positive effects. Mechanism analysis reveals that digital financial inclusion facilitates the growth of tourism by supporting the development of tourism enterprises and enhancing consumer spending. Heterogeneity analysis further reveals regional and urban disparities in the promotion of digital financial inclusion, with the effect being more pronounced in the eastern region and larger cities. In comparison to existing studies, this paper delves into the mechanisms through which digital financial inclusion impacts tourism, as well as investigates regional and city size discrepancies. Consequently, governments should strive to foster the development of digital financial inclusion to attract market players and promote the advancement of residents’ consumption, thereby bolstering tourism development.

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How does financial inclusion influence tourism demand? Empirical evidence from emerging markets and developing economies

Cited by 11 publications

References 69 publications

Nexus between environmental sustainability, good governance, financial inclusion, and tourism development in Bangladesh: Evidence from symmetric and asymmetric investigation

Nexus between environmental sustainability, good governance, financial inclusion, and tourism development in Bangladesh: Evidence from symmetric and asymmetric investigation

Do birds of a feather flock together? Analyzing environmental performance and tourist behavior using a gravity approach

How Digital Financial Inclusion Boosts Tourism: Evidence from Chinese Cities

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