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1 – 10 of over 1000Based on a panel vector error correction model (PVECM), this study aims to investigate the impact of foreign direct investment (FDI) on tourism development in a selected group of…
Abstract
Purpose
Based on a panel vector error correction model (PVECM), this study aims to investigate the impact of foreign direct investment (FDI) on tourism development in a selected group of 17 small island economies during 1995-2018. In the long run, a positive and direct relationship was found between foreign investment and tourists’ arrival. Moreover, economic performance and tourists’ income were also found to be key determinants of tourism development. It is further observed that there is bidirectional causality between the two variables. Hence, one can argue that FDI is a key element for tourism development. So, if the countries can attract more FDI and grow economically, these elements will contribute positively to the sector in the future.
Design/methodology/approach
This work uses rigorous dynamic time series analysis, namely, a dynamic PVECM, which takes into account dynamism and endogeneity issues in tourism modelling. Furthermore, the PVECM is also appropriately suited for integrating short- and long-run analysis.
Findings
The results confirm that FDI has been an important ingredient in the tourism development of the island economies in the long run. Interestingly, a bidirectional causality between FDI and tourism development is validated. Moreover, growth will as well be important. So, if the country can attract more FDI and grow economically, these elements will attract the tourists of the future.
Originality/value
Relatively few studies have rigorously studied the relationships between FDI and tourism development, particularly with respect to developing countries and small island states which rely heavily on tourism as well as FDI. As such existing research has neglected dynamic and reverse causality analysis in their respective FDI-tourism modelling. This study thus attempts to address the above and supplement the literature by investigating the direct and indirect relationship between FDI and tourism development for the case of small island economies over the period 1995-2018. Moreover, the implication of foreign capital inflows on tourism futures will as well be developed.
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Ruth Rios‐Morales, Dragan Gamberger, Ian Jenkins and Tom Smuc
Foreign direct investment has been extensively recognised as an important resource of economic growth. Governments have been playing an active role in encouraging this type of…
Abstract
Purpose
Foreign direct investment has been extensively recognised as an important resource of economic growth. Governments have been playing an active role in encouraging this type of investment. Despite efforts by governments, only a few countries have been successful in attracting investment for their tourism industry. The purpose of this paper is to detect meaningful relationships between government policies and investment.
Design/methodology/approach
This study utilizes statistical and machine learning techniques. A predictive model has been constructed and evaluated using a set of countries, which differ from those putatively used for model generation. Good governance indicators, together with data about investments in the tourism industry, are the main instruments used in the model.
Findings
The findings suggest that the formulation and implementation of sound policies, together with regulations, promotes the development of a private sector; and the private sector has a significant role in attracting tourism investment.
Practical implications
The study contributes to research in the tourism industry by using intelligent data analysis techniques.
Originality/value
The availability of comprehensive datasets and a very limited set of empirical studies, related to investment in the tourism industry, has stimulated this research to focus on integrating quantitative resources and assessing the significance of government policies.
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Jing Xu, Hanqin Zhang and Jiajia Wu
Based on the commitments made when it joined the World Trade Organization (WTO) in 2001, China began to allow the establishment of foreign‐invested travel agencies. During this…
Abstract
Purpose
Based on the commitments made when it joined the World Trade Organization (WTO) in 2001, China began to allow the establishment of foreign‐invested travel agencies. During this transition period, China promulgated travel service‐related policies and paid a great deal of attention to this specific business market. This paper aims to analyze the said tourism policies and provide suggestions to foreign investors for their future business activities in this promising market.
Design/methodology/approach
The study uses both primary and secondary data to specify China's policies on foreign‐invested travel agencies upon its accession to the WTO and discuss foreign investors' entry modes and operating strategies for joining the market. Hall's model is employed to examine the policy‐making process, including policy demands, policy decisions, policy outputs, and policy impacts.
Findings
Some foreign investment‐related tourism policies were implemented ahead of the schedule to which China committed upon its entry to the WTO. The tight nature of the policies implemented meant that only 25 foreign‐invested agencies had survived in China by August 2007. Industry professionals recruited for this study commented that the nature and pattern of FDI in this market has been successfully framed by the policies adopted.
Practical implications
The entry modes that foreign investors in China's travel service market should adopt and the detailed operating strategies they should use are discussed.
Originality/value
The paper can be seen as a successful and enlightening attempt to pave the way for future researchers to engage in further discussions about FDI in tourism in a political environment, particularly in developing countries.
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Xiaoying Liu, Qamar Ali, Muhammad Rizwan Yaseen, Samuel Asumadu Sarkodie, Muhammad Sohail Amjad Makhdum and Muhammad Tariq Iqbal Khan
The Sustainable Development Goal (SDG) 16 outlines sustainability as associated with peace, good governance and justice. The perception of international tourists about security…
Abstract
Purpose
The Sustainable Development Goal (SDG) 16 outlines sustainability as associated with peace, good governance and justice. The perception of international tourists about security measures and risks is a key factor affecting destination choices, tourist flow and overall satisfaction. Thus, we investigate the impact of armed forces personnel, prices, economic stability, financial development and infrastructure on tourism.
Design/methodology/approach
This research used data from 130 countries from 1995 to 2019, which were divided into four income groups. This study employs a two-step generalized method of moments (GMM) technique and a novel tourism index comprising five relevant indicators of tourism.
Findings
A 1% increase in armed forces personnel expands tourism in all income groups – 0.369% High Income Countries (HICs), 0.348% Upper Middle Income Countries (UMICs), 0.247% Lower Middle Income Countries (LMICs) and 0.139% Low Income Countries (LICs). The size of the tourism-safety coefficient decreases from high to low-income groups. The impact of inflation is significantly negative in all panels, excluding LICs. The reduction in tourism was 0.033% in HICs, 0.049% in UMICs and 0.029% in LMICs for a 1% increase in prices. The increase in the global tourism index is more in LICs (0.055%), followed by LMICs (0.024%), UMICs (0.009%) and HICs (0.004%) for a 1% expansion in the gross domestic product (GDP)/capita growth. However, the magnitude of the growth-led tourism impact is greater in developing countries. A positive impact of foreign direct investment (FDI) inflow was found in all panels like 0.016% in HICs, 0.050% in UMICs and 0.119% in LMICs for a 1% increase in FDI inflow. The rise in the global tourism index is 0.097% (HICs), 0.124% (UMICs) and 0.310% (LMICs) for a 1% rise in the financial development index. The increase in the global tourism index is 0.487% (HICs), 0.420% (UMICs) and 0.136% (LICs) for a 1% rise in the infrastructure index.
Research limitations/implications
Empirical analysis infers important policy implications such as (a) establishment of a peaceful environment via recruitment of security personnel, use of safe city cameras, modern technology and law enforcement; (b) provision of basic facilities to tourists like sanitation, drinking water, electricity, accommodation, quality food, fuel and communication network and (c) price stability through different tools of monetary and fiscal policy.
Originality/value
First, it explains the effect of security personnel on a comprehensive index of tourism instead of a single variable of tourism. Second, it captures the importance of economic stability (i.e., economic growth, financial development and FDI inflow) in the tourism–peace nexus.
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Morteza Soltani, Nima Soltani Nejad, Fatemeh Taheri Azad, Babak Taheri and Martin Joseph Gannon
This study aims to develop a framework to identify the drivers underpinning food tourists' behavioral intentions (BIs). This framework centers on examining how local food…
Abstract
Purpose
This study aims to develop a framework to identify the drivers underpinning food tourists' behavioral intentions (BIs). This framework centers on examining how local food consumption value (TLFCV), local food experiential value (TLFEV) and social media influencers (SMIs) impact upon tourists’ attitudes toward local food (ATLF) and food destination image (FDI). The impact of ATLF and FDI on tourists’ BIs is also examined.
Design/methodology/approach
PLS-SEM was used to test the hypothesized relationships using survey responses from 379 tourists visiting Rasht, Iran.
Findings
The results demonstrate that TLFCV, TLFEV and SMIs can be used to populate a theoretical framework for predicting and understanding the factors influencing tourists’ ATLF and FDI. Specifically, positive ATLF and FDI stimulated positive BIs (e.g., intending to recommend Iranian food to others and intending to revisit Iran in future for culinary tourism purposes).
Practical implications
The findings provide managers and practitioners within the culinary tourism industry with suggestions for how best to strategically market their offerings to increase inbound food tourism.
Originality/value
This study is one of the first to empirically evaluate the drivers of food tourists' BIs, presenting a newly developed model for deployment in future research. Originality is also established by simultaneously investigating TLFCV and TLFEV within the context of food tourism.
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Syed Ale Raza Shah, Daniel Balsalobre-Lorente, Magdalena Radulescu, Qianxiao Zhang and Bilal Hussain
This paper aims to emphasize economic complexity, tourism, information and communication technology (ICT), renewable energy consumption and foreign direct investment (FDI) as the…
Abstract
Purpose
This paper aims to emphasize economic complexity, tourism, information and communication technology (ICT), renewable energy consumption and foreign direct investment (FDI) as the determinants of carbon emissions.
Design/methodology/approach
These economies rely on the tourism sector, and Asian countries rank among the top tourism economies worldwide in terms of tourism receipts. This study uses a series of empirical estimators, i.e. cross-sectional augmented auto-regression distributive lag and panel cointegration, to validate the main hypotheses.
Findings
The econometric results confirm an inverted U-shaped association between economic complexity and carbon emissions, validating the economic complexity index induced environment Kuznets curve hypothesis for the selected Asian economies.
Research limitations/implications
Finally, the empirical results admit articulating some imperative policy suggestions to attain a sustainable environment on behalf of outcomes.
Practical implications
Furthermore, ICT and renewable energy consumption are environment-friendly indicators, while FDI and the international tourism industry increase environmental pressure in selected countries. In addition, this study also explores the interaction between renewable energy and ICT with FDI and their effects on carbon emissions. Interestingly, both interaction terms positively respond to the environmental correction process.
Originality/value
Because ICT with FDI may not reduce environmental pollution unless the energy used in FDI projects is greener. Moreover, in Asian economies, industrial and other sectors could increase environmental quality via the role of ICT in FDI.
修正亚洲前 8 大经济体的旅游环境库兹涅茨曲线假设:ict 和可再生能源消耗的作用
研究设计/方法/途径
这些经济体依赖旅游业, 就旅游收入而言, 亚洲国家在全球旅游经济体中名列前茅。本研究使用一系列经验估计量, 即 CS-ARDL 和面板协整来验证我们的主要假设。
研究目的
本文强调经济复杂性、旅游、信息和通信技术 (ICT)、可再生能源消费和外国直接投资 (FDI) 作为碳排放的决定因素
研究发现
计量经济学结果证实了经济复杂性与碳排放之间的倒 U 型关联, 验证了 ECI 对选定亚洲经济体的环境库兹涅茨曲线 (EKC) 假设。
研究限制/影响
最后, 实证结果承认阐明了一些必要的政策建议, 以代表结果实现可持续环境。
实践意义
此外, 信息通信技术和可再生能源消耗是环境友好型指标, 而外国直接投资和国际旅游业增加了选定国家的环境压力。此外, 本研究还探讨了可再生能源和 ICT 与外国直接投资之间的相互作用及其对碳排放的影响。有趣的是, 这两个交互项都对环境校正过程做出了积极响应。
研究原创性/价值
ICT 与 FDI 可能不会减少环境污染, 除非 FDI 项目中的能源使用更环保。此外, 在亚洲经济体中, 工业和其他部门可以通过 ICT 在 FDI 中的作用提高环境质量。
关键词
环境库兹涅茨曲线; 外商直接投资;信息和通信技术; 可再生能源;旅游;亚洲主要旅游经济体
文章类型: 研究型论文
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Nicolas Papadopoulos, Leila Hamzaoui-Essoussi and Alia El Banna
This study aims to address a heretofore neglected area in research, nation branding, for the purpose of attracting foreign direct investment (FDI). It compares and contrasts the…
Abstract
Purpose
This study aims to address a heretofore neglected area in research, nation branding, for the purpose of attracting foreign direct investment (FDI). It compares and contrasts the well-established literature on decision-making and location choice in FDI with studies in the nascent field of nation branding, with a view to developing directions for future research that result from the identification of research gaps at the intersection point between the two areas.
Design/methodology/approach
The study is based on a systematic and integrative review of several streams within the relevant literatures, from the theory of decision-making in FDI to the similarities and differences between advertising, promotion, branding and marketing for investment on the part of nations and sub- or supra-national places.
Findings
Each of the two areas is characterized by lack of consensus as to the principal factors that affect investor and nation decisions and actions, resulting in several knowledge gaps that need to be addressed by new research along the lines suggested in the study.
Research limitations/implications
A large number of avenues for potential future research are identified, from assessing the importance of target country image in location choice to the adverse effects arising from the emphasis on “promotion” rather than “marketing” on the part of places engaged in nation branding efforts.
Practical implications
The study examines several problems that affect the practice of nation branding for FDI and points to alternative approaches that may enhance place marketers’ effectiveness in their efforts to attract foreign capital.
Originality/value
Notwithstanding the global growth of FDI in volume and importance, and the omnipresence of nation branding campaigns to promote exports or attract tourism and investment, there has been virtually no research to date on the core issue, nation branding for FDI. The study uses a strategic perspective that highlights key nation branding issues related to FDI, and FDI issues related to nation branding, and suggests a comprehensive agenda for research in the future.
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Tehreem Fatima, Muhammad Saeed Meo, Festus Victor Bekun and Tella Oluwatoba Ibrahim
According to the crusade of the United Nations sustainable development goals (SDGs-6, 7,8,12 and 13) that addressed pertinent issues around, clean access to water, access to…
Abstract
Purpose
According to the crusade of the United Nations sustainable development goals (SDGs-6, 7,8,12 and 13) that addressed pertinent issues around, clean access to water, access to energy, responsible consumption and climate change mitigation alongside, respectively, Paris Kyoto Protocol agreement of mitigation of climate changes issues of vision 2030.
Design/methodology/approach
This purpose of this study aimed to assess the Environmental Kuznets Curve hypothesis following the ecological footprint perspective with a data set covering the period 1995–2018. It is well-established that anthropogenic human activities are the root cause of environmental deterioration. To this end, the current study is fitted in a multivariate framework to ameliorate for omitted variable bias for the data set from 1995–2018 on a quarterly frequency using autoregressive distributive lag methodology. Subsequently, the stationarity status of the study underlines series were examined with a conventional unit root test and the Pesaran’s bounds test for cointegration analysis.
Findings
Empirical evidence from the bounds test to cointegration traces the co-integration relationship between ecological footprint, conventional energy use, foreign direct investment, international tourism arrival and water resources over the sampled period. The study, in the long run, affirms the N-shaped relationship between ecological footprint and foreign direct investment in Vietnam. Additionally, the present study validates the hypothesis of energy consumption-induced pollution emissions. The relationship between international tourism arrival and quality of the environment is statistically positive in both the short-run and long-run, as 1% in international tourism arrival worsens the quality of the environment by 0.45% and 0.4% in the short-run and long-run, respectively. Interestingly, water resource's major environmental issues that have plagued the Vietnam economy are inversely related to ecological footprint. Based on findings, Vietnamese policymakers may need to consider drafting appropriate environmental policies to tackle global warming while concurrently boosting economic development.
Originality/value
The present study focuses on Vietnam on the determinant of environmental quality measured by a broader indicator (ecological footprint). It is well-established that anthropogenic human activities are the root cause of environmental deterioration. The present study claims to distinct from previous literature in two-folds, namely, in terms of scope. Vietnam holds a very interesting energy mix and environmental dynamics, which has been ignored in the literature. Second, we argue to be the first based on our survey to explore the theme by incorporation of water resources and foreign direct investment intensification in the conventional pollution determinant model. This is in a bid to highlights the policy blueprint for the country (Vietnam), which is currently plagued with high pollution issues and the region at large.
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Usha C.V. Haley and George T. Haley
Emphasizes that tourism forms the largest industry in the world and the Vietnamese Government has targeted it for strategic foreign direct investment (FDI). Notes although…
Abstract
Emphasizes that tourism forms the largest industry in the world and the Vietnamese Government has targeted it for strategic foreign direct investment (FDI). Notes although researchers and policy makers comprehend particular aspects of tourism, they often misperceive how the variables interact within economic and political systems. Elaborates on experiences in similar and related Asian markets that indicate policies necessary to develop a sustainable, socially and ecologically‐desirable tourism industry through appropriate balancing of key stakeholders’ goals. First defines sustainable development in the context of tourism and indicates its relevance for Vietnam. Next, analyses some economic and social costs and benefits associated with tourism; also interprets recent governmental policies’ influences. Finally, provides policy recommendations for the future of sustainable and economically‐viable national tourism development in Vietnam.
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The purpose of this paper is to identify the key factors influencing foreign direct investment (FDI) in the South African tourism industry. This is done in order to successfully…
Abstract
Purpose
The purpose of this paper is to identify the key factors influencing foreign direct investment (FDI) in the South African tourism industry. This is done in order to successfully attract and sustain FDI as well as to remain competitive.
Design/methodology/approach
A survey was conducted by means of questionnaires that were completed by various estate agents in South Africa that specialise in dealing with foreign direct investors. The descriptive statistical analyses were performed by using the Statistical Programme for Social Sciences (SPSS 15.0). A factor analysis with Promax rotation was performed and five key factors were identified.
Findings
The findings indicated the following key factors: namely perception and infrastructure, government and policy, economy, competitiveness, and nature. The results also indicated which type of product is preferred by which international market.
Practical implications
The results can be used to assist government policy on FDI as well as to assist marketers to focus on specific issues in their marketing campaigns.
Originality/value
The paper makes the following contributions: first, it gives greater insight and understanding of the decision making of foreign investment in the South African industry. Second, it is the first time that this research has been attempted in South Africa. Third, it shows the close relationship between FDI marketing and tourism marketing.
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