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Causality between Foreign Direct Investment and Tourism: Empirical Evidence from India

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Author Info

  • Saroja Selvanathan

    (Griffith Business School, Griffith University, Queensland, Australia)

  • Selvanathan

    (Griffith Business School, Griffith University, Queensland, AustraliaAuthor-Email: kausik@mse.ac.in)

  • Brinda Viswanathan

    ()
    (Madras School of Economics)

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    Abstract

    This paper investigates the causal link between foreign direct investment and tourism in India by employing the Granger causality test under a VAR framework. A one-way causality link is found from foreign direct investment to tourism in India. This evidence once again adds to the need for appropriate policies and plans to further expand and develop tourism given that FDI flow into India is expected to be strong in the coming years, bringing along a demand for tourism as well.

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    File URL: http://www.mse.ac.in/pub/working%20paper%2046.pdf
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    Bibliographic Info

    Paper provided by Madras School of Economics,Chennai,India in its series Working Papers with number 2009-046.

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    Length: 26 pages
    Date of creation: Apr 2009
    Date of revision:
    Handle: RePEc:mad:wpaper:2009-046

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    Related research

    Keywords: FDI; Tourism; Granger Causality;

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    1. Hiro Y. Toda & Peter C.B. Phillips, 1991. "Vector Autoregression and Causality," Cowles Foundation Discussion Papers 977, Cowles Foundation for Research in Economics, Yale University.
    2. Kundu, Sumit K. & Contractor, Farok J., 1999. "Country location choices of service multinationals: An empirical study of the international hotel sector," Journal of International Management, Elsevier, vol. 5(4), pages 299-317.
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