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The effect of institutional innovations on tourism spending in developed countries

Author

Listed:
  • Martin Rigelský

    (University of Prešov, Slovakia)

  • Beata Gavurova

    (Technical University of Košice, Slovakia)

  • Ladislav Suhanyi

    (University of Prešov, Slovakia)

  • Radovan Bačík

    (University of Prešov, Slovakia)

  • Viera Ivankova

    (Technical University of Košice, Slovakia)

Abstract

The new institutional economy deals with the study of innovations that can be reflected in various national sectors, including tourism. The objective of the presented study was to evaluate the significance of the effects of institutional innovations on tourism spending. The analyses included data from databases of the World Travel & Tourism Council (business tourism spending (BTS), leisure tourism spending (LTS), domestic tourism spending (DTS) and visitor exports (foreign spending) (VEFS)) and the Global Innovation Index reports published by Cornell University, INSEAD and WIPO (political environment, regulatory environment, business environment) from 2010 to 2019 for 36 OECD countries (excluding Colombia). Panel regression models (pooling, fixed, random) adjusted by robust estimation were used for analytical processing. The findings indicate that LTS was the category with the highest spending and BTS was the category with the lowest spending. One of the most important findings is that institutional innovations in the business environment have the greatest effect on tourism spending. It can be concluded that with an increase in innovations in the business environment, an increase in BTS, LTS and VEFS can be expected. In the political and regulatory environments, it is not possible to talk about demonstrable effects in general.

Suggested Citation

  • Martin Rigelský & Beata Gavurova & Ladislav Suhanyi & Radovan Bačík & Viera Ivankova, 2021. "The effect of institutional innovations on tourism spending in developed countries," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(2), pages 457-472, December.
    • Handle: RePEc:ssi:jouesi:v:9:y:2021:i:2:p:457-472
    DOI: 10.9770/jesi.2021.9.2(30)
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    References listed on IDEAS

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    More about this item

    Keywords

    tourism; innovation; expenditure; political environment; regulatory environment; business environment;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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