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The Relationship between Foreign Direct Investment and Tourism: Empirical Evidence from China

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  • Sumei Tang

    (Department of International Business and Asian Studies, Griffith University, Queensland, Australia)

  • E.A. Selvanathan

    (Department of International Business and Asian Studies, Griffith University, Queensland, Australia)

  • Saroja Selvanathan

    (Department of Accounting, Finance and Economics, Griffith University, Nathan, Queensland 4111, Australia)

Abstract

This paper investigates the causal link between foreign direct investment and tourism in China by employing the Granger causality test under a VAR framework proposed by Zapata and Rambaldi (1997). Only a one-directional causality is found from foreign direct investment to tourism. This explains the rapid growth in the tourism market in China during the past decade.

Suggested Citation

  • Sumei Tang & E.A. Selvanathan & Saroja Selvanathan, 2007. "The Relationship between Foreign Direct Investment and Tourism: Empirical Evidence from China," Tourism Economics, , vol. 13(1), pages 25-39, March.
    • Handle: RePEc:sae:toueco:v:13:y:2007:i:1:p:25-39
    DOI: 10.5367/000000007779784498
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    References listed on IDEAS

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