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The Relationship between Foreign Direct Investment and Tourism Development: Evidence from Developing Countries

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Author Info

  • Ahmad Jafari Samimi

    ()
    (University of Mazandaran, Babolsar, Iran)

  • Somaye Sadeghi

    ()
    (Islamic Azad University Firoozkooh, Iran)

  • Soraya Sadeghi

    ()
    (Islamic Azad University Firoozkooh, Iran)

Abstract

This paper investigates the existence of Granger causality and co-integrated relationships between tourism related Foreign Direct Investment (FDI)and tourism development in developing countries using panel VECM techniques from 1995 to 2008. The results confirm the existence of a co-integrated relationship between variables in the long run. In addition, there is a bilateral long-run causality between tourism related FDI and tourism development, while there is no short-run causality between variables.

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Bibliographic Info

Article provided by Faculty of Economics and Administration, University of Malaya in its journal Institutions and Economies (formerly known as International Journal of Institutions and Economies).

Volume (Year): 5 (2013)
Issue (Month): 2 (July)
Pages: 59-68

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Handle: RePEc:umk:journl:v:5:y:2013:i:2:p:59-68

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Related research

Keywords: developing countries; Foreign Direct Investment; panel VECM; tourism industry;

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