IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v12y2022i7p565-581id4555.html
   My bibliography  Save this article

The Triangular Causal Relationship between Economic Growth, Tourism, and Foreign Direct Investment: A Case Study in Central Vietnam

Author

Listed:
  • Phuong Nu Minh Le
  • Hang Thi Thuy Nguyen
  • Thanh Doan Thanh Tran

Abstract

The article proposes a method to broach the complication and mixture of the triangular causal nexus among gross domestic product (GDP), foreign direct investment (FDI), and foreign tourist arrivals (FTA) in Thua Thien Hue (TTH) province that has not yet been studied. FDI into TTH province fluctuates unpredictably, so the study investigates the causal relationship between the triangular variables over the whole period (1995–2019) and the shortened period (2003–2019). The ARDL model is the most optimal choice due to the heterogeneity of stationary characteristics and short time series data. The shortened period has established more statistically significant short- and long-term Granger causal relationships, excluding the economic crisis effect. The Granger causality test only underlined a unidirectional short-term relationship running from FTA to FDI in the shortened period. Policies for economic development in TTH province need to strengthen the coordination between foreign investment and tourism so that all economic sectors can jointly create spillover effects on economic growth.

Suggested Citation

  • Phuong Nu Minh Le & Hang Thi Thuy Nguyen & Thanh Doan Thanh Tran, 2022. "The Triangular Causal Relationship between Economic Growth, Tourism, and Foreign Direct Investment: A Case Study in Central Vietnam," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 12(7), pages 565-581.
    • Handle: RePEc:asi:aeafrj:v:12:y:2022:i:7:p:565-581:id:4555
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/4555/7143
    Download Restriction: no
    File URL: https://archive.aessweb.com/index.php/5002/article/view/4555/7654
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:12:y:2022:i:7:p:565-581:id:4555. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.