Foreign Direct Investment in the tourism sector: The case of France

Abstract

This study investigates the determinants of inward Foreign Direct Investment (FDI) stock in the French hospitality industry. A panel gravity model is applied to bilateral inward FDI stock between France and nineteen investor countries in Hotels and the Restaurant industry over 2000-2017. Results show that bilateral inward FDI stocks between France and investor countries are positively affected by their income and are inversely proportional to the distance between them. It is also found that differentials between France and the investing countries in terms of taxes, labour costs, abundance of skilled labour, supply of public goods and total FDI stock also play a significant role in understanding the foreign location decisions. Finally, the results show that France is particularly successful in attracting FDI in the hospitality industry from French-speaking countries with a common border and cultural proximity to France.

Assessing Sustainable Foreign Direct Investment Performance in Malaysia: A Comparison on Policy Makers and Investor Perceptions

“…Prior studies have used the secondary quantitative approach to assess the determinants in different contexts, such as econometric methods [21][22][23], semi-structured interview, and questionnaire approaches [7,11]. Only a few studies have used primary qualitative approaches, such as literature review and expert opinions [12], and analytic hierarchy process [13], although the quantitative approaches, such as panel generalized method of moments and panel fixed or random effect, dominated in prior studies.…”

“…However, the capital inflows might be hindered by the interest rate (C4) [39,40]. Labor costs (C7) might hamper the incoming investment, which has also been proposed [13,23]. The cross-border capital inflows encumbered by profitability (C8) is documented in Reference [36].…”

“…By focusing on the social aspect (AS5), reinforcing technology, including technology readiness (C40), has a tendency to attract foreign investors [10]. The total labor force and skilled labor (C39) could encourage more foreign investment inflows as suggested by Reference [23,46]. However, foreign investors are not likely to invest in the destination with higher criminal activities (C38) [49].…”

“…The frequency of criminal activities in the host country. [7,8,10,23,35,39,41,46,48,49,56,57] PC95 Cultural Distance…”

Концептуальная Модель Государственно-Частного Партнерства В Сфере Туризма

“…Certain scientists-researchers, in the search for the optimal priorities of the investment policy for the development of the tourism industry, have established patterns that investments will be effective, provided that the income of the population grows and their location is closer to places of rest. These aspects are considered in scientific research of Portuguese scientists Cro S., Martins A.M. [6]. The role of investment in the tourism industry, focused on the quantitative growth of tourism services and the creation of new jobs, was considered by the scientist Ilie G. from Romania [7].…”