Foreign Direct Investment and Tourism Development: A Theoretical and Empirical Review

Nunkoo, Robin; Seetanah, Boopen

doi:10.4135/9781526461452.n33

Cited by 8 publications

(13 citation statements)

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“…Results from statistical analyses showed that the tourism infrastructure was not substantially linked to the purpose of revisiting, so hypothesis 4 was not backed. Interestingly, this finding is inconsistent with previous studies that suggested that tourism infrastructure is a key feature for attracting tourists to revisit a tourism destination (Moreira & Iao, 2014;& Nunkoo & Seetanah, 2018) The incidence of this unexpected outcome may be due to the weak park facilities in the present case. Low infrastructure efficiency (e.g.…”

Section: Hypothesiscontrasting

confidence: 99%

“…Tourism infrastructure refers to the ease of a tourism destination's transport facilities and basic services (Mo, Howard, & Havitz, 1993). Murphy, Pritchard & Smith (2000) highlighted the importance of infrastructure facilities in contributing to the efficiency of destination growth and tourists' revisit purpose (Nunkoo & Seetanah &, 2018). Moreira and Iao (2014) further suggested that tourism infrastructure is one of the important elements for attracting tourists to the destination.…”

Section: Tourism Infrastructurementioning

confidence: 99%

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Destination Image towards Revisit Intention to Natural Protected Areas in Sarawak: A Study of Functional Characteristics

Thong¹,

Ching²,

Chin³

2020

IJARBSS

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Ecotourism is one of the major motives in tourism development through this advancing digitalized world. Moreover, the government is looking forward to seeing an opportunity to enhance attractiveness of ecotourism creation through the Visit Truly Asia Malaysia 2020 initiative. Furthermore, the sustainability of destination image should be established in a way that significantly increases the revisit intention of tourists. This study is to examine the relationship between the functional characteristics of destination image and revisit intention, namely, natural and historical attractions, entertainment and tourism activities, and tourism infrastructure as well as price and value. A total of 283 respondents comprising tourists both local and foreign tourists visited Gunung

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Section: Hypothesiscontrasting

confidence: 99%

Section: Tourism Infrastructurementioning

confidence: 99%

Destination Image towards Revisit Intention to Natural Protected Areas in Sarawak: A Study of Functional Characteristics

Thong¹,

Ching²,

Chin³

2020

IJARBSS

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“…Results depicted that tourism and financial development contribute significantly and directly to economic growth. Nunkoo and Seetanah (2018) reviewed the empirical work on FDI-tourism nexus. They found that bidirectional causality exists among tourism and FDI, while FDI positively affects tourism.…”

Section: Literature Reviewmentioning

confidence: 99%

Asymmetric Impact of FDI and Exchange Rate on Tourism: Evidence From Panel Linear and Nonlinear ARDL Model

Munir

Iftikhar

2021

SAGE Open

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This study analyzes the long run as well as short run linear and nonlinear impact of foreign direct investment (FDI) and exchange rate on tourism in South Asian countries. The study uses annual panel data of five South Asian countries that is Bangladesh, India, Nepal, Pakistan, and Sri Lanka from 1995 to 2019 and applies panel linear autoregressive distributive lag (ARDL) and nonlinear autoregressive distributive lag (NARDL) methodology to analyze the long run and short run relationship among the variables. Results show that an increase in FDI and appreciation of exchange rate contracts tourism, while a decrease in FDI and depreciation of exchange rate expands tourism in the long run. Both FDI and exchange rate shows asymmetric behavior with tourism in the long run in South Asian countries. Results of individual countries show that FDI has asymmetric impact on tourism in Bangladesh, India, Pakistan, and Sri Lanka in the short run, while exchange rate has asymmetric impact on tourism in Bangladesh, India, Nepal, and Pakistan in the short run. Moreover, unidirectional causality exits from FDI, exchange rate, partial negative sum of FDI, and partial positive sum of exchange rate to tourism as well as from tourism to partial positive sum of FDI and partial negative sum of exchange rate. Therefore, there is a need to expand tourism sector through attracting FDI in tourism sector, while FDI attraction and tourism development must be well coordinated among different departments as well as maintain exchange rate at a reasonable level to encourage international tourism.

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“…Scholars have debated that due to their small size, SIDS have difficulties to diversify their export and as a result of this, there is an overdependence on a narrow range of goods and services (Armstrong and Read, 2002; Briguglio, 1995). The unique characteristics of small island states, therefore, provide a special case for studying the tourism-FDI relationship (Nunkoo and Seetanah, 2018). Hence, by using a panel vector error correction model (PVECM), the present study attempts at investigating the relationship between FDI and tourism development for 17 small island economies over the period 1995-2018.…”

Section: Introductionmentioning

confidence: 99%

FDI and tourism futures: a dynamic investigation for a panel of small island economies

Fauzel

2020

JTF

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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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Foreign Direct Investment and Tourism Development: A Theoretical and Empirical Review

Cited by 8 publications

References 0 publications

Destination Image towards Revisit Intention to Natural Protected Areas in Sarawak: A Study of Functional Characteristics

Destination Image towards Revisit Intention to Natural Protected Areas in Sarawak: A Study of Functional Characteristics

Asymmetric Impact of FDI and Exchange Rate on Tourism: Evidence From Panel Linear and Nonlinear ARDL Model

FDI and tourism futures: a dynamic investigation for a panel of small island economies

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