Foreign Direct Investment in Tourism and Economic Growth: Panel Data of OECD Countries
Journal Title: International Journal of Advanced Engineering Research and Science - Year 2018, Vol 5, Issue 9
Abstract
It is debated whether foreign direct investment (FDI) exerts significant influence on economic growth. This paper aims to examine the effect of FDI in tourism on economic growth. The particular focus on tourism provides insight on possible contradictory process that previous literature have captured. This paper analyzes panel data of 18 OECD countries from 2005 to 2012 using system GMM developed by Arellano and Bover (1995) and Blundell and Bond (1998). The results show that FDI in tourism industry does not significantly affect economic growth. Furthermore, the absorptive capacities, human capital and trade openness, that are proven to work for aggregate FDI do not work for tourism-related FDI. Therefore governments are advised to take precaution against the common wisdom that FDI (in aggregate) contributes to economic growth. As this paper suggests, tourism industry, among other sectors, presents itself as an exception.
Authors and Affiliations
Keywords
Related Articles
- EP ID EP505498
- DOI 10.22161/ijaers.5.9.34
- Views 40
- Downloads 0
Computer Simulation and Fire Drill in an Educational Building
Despite the evolution of computational models for evacuation simulations, there's still some doubt if they can generate accurate results. The objective is to analyze and compare the evacuation times of a fire drill and a...
Approach of economic‐emission load dispatch using Ant Lion Optimizer
To solve the problem of the economic emission load dispatch (EELD) is necessary minimize the total cost of fuel consumption and carbon emission. In this study is applied the ant lion optimizer (ALO) to this problem. The...
The Effects of Nitrogen Fertilization and Deficit Irrigation Practices on Tomato Growth and Chlorophyll Concentration
Irrigation and fertilization are absolutely necessary in order to increase productivity in agricultural production. Water is the most important source of life on the earth. All living things need absolute water so that t...
Evaluation of Risk Reduction for Portfolio in Islamic Investment Using Modern Portfolio Theory
Main objective of this study is to maximize expected return and in the same time lowering investment risk. The methodology implemented in this study is modern portfolio theory through diversification assets that has low...
Application of Remote Sensing & GIS in Agriculture
This article provides an overview of some of the recent research in agriculture involving remote sensing and GIS. Attention focuses on application of remote sensing and GIS specially in agriculture including geography, l...