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Capital investment in telecommunications infrastructure and tourist arrivals in developing countries: Does the public–private sectors relationship matter?

Author

Listed:
  • Hassan F Gholipour

    (Western Sydney University, Australia)

  • Amirhossein Eslami Andargoli

    (Swinburne University of Technology, Australia)

  • Amir Arjomandi

    (University of Wollongong, Australia)

  • Behzad Foroughi

    (I-Shou University, Taiwan)

Abstract

This study investigates the relationship between capital investment in telecommunications infrastructure (TELCOM) and tourist arrivals in developing countries. Additionally, it examines whether the public–private sectors relationship moderates the effect of TELCOM on inbound tourism. The model is empirically tested for 46 developing countries for the years 2005–2019. Applying system generalized method of moments and dynamic fixed-effects estimators, the results show there is a positive and significant relationship between TELCOM and tourist arrivals. We also find that a stronger relationship between the public and private sectors magnifies the positive effect of TELCOM on inbound tourism. The moderating effect of quality of regulations on TELCOM-tourism nexus is a novel finding, highlighting the important role of governments in creating and implementing sound policies and regulations that permit and promote private sector development.

Suggested Citation

  • Hassan F Gholipour & Amirhossein Eslami Andargoli & Amir Arjomandi & Behzad Foroughi, 2022. "Capital investment in telecommunications infrastructure and tourist arrivals in developing countries: Does the public–private sectors relationship matter?," Tourism Economics, , vol. 28(7), pages 1805-1822, November.
    • Handle: RePEc:sae:toueco:v:28:y:2022:i:7:p:1805-1822
    DOI: 10.1177/13548166211014814
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