Sustainable tourism industry development in sub-Saharan Africa: Consequences of foreign hotels for local employment
While foreign investment in the tourism industry is often considered important in stimulating sustainable development in least developed countries, empirical evidence is still scarce and ambiguous. Focusing on the social (employment) dimension of sustainable development, this paper analyses how foreign firms in the hotel industry influence the quantity of local employment (number of jobs) and its quality (skills). Using interview data with managers of 123 foreign and locally owned hotels in Mozambique, Tanzania and Ethiopia, we find that the simple scale effects of foreign hotels in least developed countries are positive. However, rather than contributing to local human capital via training, foreign firms instead prefer to hire well-trained employees from local hotels. We explore the implications of such reverse knowledge transfer for policy makers in least developed countries.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 19 (2010)
Issue (Month): 2 (April)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fosfuri, Andrea & Motta, Massimo & Rønde, Thomas, 1999.
"Foreign Direct Investment and Spillovers through Workers' Mobility,"
CEPR Discussion Papers
2194, C.E.P.R. Discussion Papers.
- Fosfuri, Andrea & Motta, Massimo & Ronde, Thomas, 2001. "Foreign direct investment and spillovers through workers' mobility," Journal of International Economics, Elsevier, vol. 53(1), pages 205-222, February.
- Andrea Fosfuri & Massimo Motta & Thomas Ronde, 1998. "Foreign direct investments and spillovers through workers' mobility," Economics Working Papers 258, Department of Economics and Business, Universitat Pompeu Fabra.
- Holger Görg & Henning Mühlen & Peter Nunnenkamp, 2009.
"Firm Heterogeneity, Industry Characteristics and Types of FDI: The Case of German FDI in the Czech Republic,"
Kiel Working Papers
1544, Kiel Institute for the World Economy.
- Mühlen, Henning & Görg, Holger & Nunnenkamp, Peter, 2010. "Firm Heterogeneity, Industry Characteristics and Types of FDI: The Case of German FDI in the Czech Republic," Open Access Publications from Kiel Institute for the World Economy 37268, Kiel Institute for the World Economy (IfW).
- Romer, Paul, 1993. "Idea gaps and object gaps in economic development," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 543-573, December.
- Glass, Amy Jocelyn & Saggi, Kamal, 1999.
"Multinational firms and technology transfer,"
Policy Research Working Paper Series
2067, The World Bank.
- Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998.
"How does foreign direct investment affect economic growth?1,"
Journal of International Economics,
Elsevier, vol. 45(1), pages 115-135, June.
- Eduardo Borensztein & Jose De Gregorio & Jong-Wha Lee, 1995. "How Does Foreign Direct Investment Affect Economic Growth?," NBER Working Papers 5057, National Bureau of Economic Research, Inc.
- Driffield, Nigel, 1999. "Indirect Employment Effects of Foreign Direct Investment into the UK," Bulletin of Economic Research, Wiley Blackwell, vol. 51(3), pages 207-21, July.
- Alan M Rugman & Alain Verbeke, 1992. "A Note on the Transnational Solution and the Transaction Cost Theory of Multinational Strategic Management," Journal of International Business Studies, Palgrave Macmillan, vol. 23(4), pages 761-771, December.
- Gorg, Holger & Strobl, Eric, 2001. "Multinational Companies and Productivity Spillovers: A Meta-analysis," Economic Journal, Royal Economic Society, vol. 111(475), pages F723-39, November.
- Steven Globerman & John C. Ries & Ilan Vertinsky, 1994. "The Economic Performance of Foreign Affiliates in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 27(1), pages 143-56, February.
- Nair-Reichert, Usha & Weinhold, Diana, 2001. " Causality Tests for Cross-Country Panels: A New Look at FDI and Economic Growth in Developing Countries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(2), pages 153-71, May.
- Sebnem Kalemli-Ozcan & Laura Alfaro & Selin Sayek & Areendam Chanda, 2002.
"FDI and Economic Growth: The Role of Local Financial Markets,"
- Alfaro, Laura & Chanda, Areendam & Kalemli-Ozcan, Sebnem & Sayek, Selin, 2004. "FDI and economic growth: the role of local financial markets," Journal of International Economics, Elsevier, vol. 64(1), pages 89-112, October.
- M. Ramirez, 2000. "Foreign Direct Investment in Mexico: A Cointegration Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 37(1), pages 138-162.
- Braconier, Henrik & Baldwin, Richard E. & Forslid, Rikard, 1999.
"Multinationals, Endogenous Growth and Technological Spillovers: Theory and Evidence,"
Working Paper Series
519, Research Institute of Industrial Economics.
- Richard Baldwin & Henrik Braconier & Rikard Forslid, 2005. "Multinationals, Endogenous Growth, and Technological Spillovers: Theory and Evidence," Review of International Economics, Wiley Blackwell, vol. 13(5), pages 945-963, November.
- Baldwin, Richard & Braconier, Henrik & Forslid, Rikard, 1999. "Multinationals, Endogenous Growth and Technological Spillovers: Theory and Evidence," CEPR Discussion Papers 2155, C.E.P.R. Discussion Papers.
- Gershenberg, Irving, 1987. "The training and spread of managerial know-how, a comparative analysis of multinational and other firms in Kenya," World Development, Elsevier, vol. 15(7), pages 931-939, July.
- Holger Gorg, 2000. "Multinational companies and indirect employment: measurement and evidence," Applied Economics, Taylor & Francis Journals, vol. 32(14), pages 1809-1818.
- Narula Rajneesh & Marin Anabel, 2005. "Exploring the relationship between direct and indirect spillovers from FDI in Argentina," Research Memorandum 024, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Caroline Ashley & Dilys Roe, 2002. "Making tourism work for the poor: Strategies and challenges in southern Africa," Development Southern Africa, Taylor & Francis Journals, vol. 19(1), pages 61-82.
- M. Thea Sinclair, 1998. "Tourism and economic development: A survey," Journal of Development Studies, Taylor & Francis Journals, vol. 34(5), pages 1-51.
- Willem te Velde , Dirk, 2003. "Foreign Direct Investment and Income Inequality in Latin America," Documentos de trabajo 4/2003, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
- Balasubramanyam, V N & Salisu, M & Sapsford, David, 1996.
"Foreign Direct Investment and Growth in EP and IS Countries,"
Royal Economic Society, vol. 106(434), pages 92-105, January.
- V N Balasubramanyam & M Salisu & David Sapsford., . "Foreign Direct Investment and Growth in EP and IS Countries," Working Papers ec18/94, Department of Economics, University of Lancaster.
- Jeffrey P Shay & Sally A Baack, 2004. "Expatriate assignment, adjustment and effectiveness: an empirical examination of the big picture," Journal of International Business Studies, Palgrave Macmillan, vol. 35(3), pages 216-232, May.
- Frank Barry & Holger Gorg & Eric Strobl, 2005. "Foreign direct investment and wages in domestic firms in Ireland: Productivity spillovers versus labour-market crowding out," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 12(1), pages 67-84.
- James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 169-189, Spring.
- Klaus E Meyer, 2004. "Perspectives on multinational enterprises in emerging economies," Journal of International Business Studies, Palgrave Macmillan, vol. 35(4), pages 259-276, July.
- Barry P. Bosworth & Susan M. Collins, 1999. "Capital Flows to Developing Economies: Implications for Saving and Investment," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 30(1), pages 143-180.
- Robert Grosse, 1996. "International Technology Transfer in Services," Journal of International Business Studies, Palgrave Macmillan, vol. 27(4), pages 781-800, December.
- Joze Mencinger, 2003. "Does Foreign Direct Investment Always Enhance Economic Growth?," Kyklos, Wiley Blackwell, vol. 56(4), pages 491-508, November.
- Xiaolan Fu & V. N. Balasubramanyam, 2005. "Exports, Foreign Direct Investment and Employment: The Case of China," The World Economy, Wiley Blackwell, vol. 28(4), pages 607-625, 04.
- Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, June.
When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:19:y:2010:i:2:p:191-205. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.