The relationship between tourism and foreign direct investment in developing countries (approach causality panel data)

Subject Areas : Financial Economics

داوود Behbod ¹ , فرانک Bastan ²

1 - دانشیار گروه اقتصاد دانشگاه تبریز
2 - کارشناس ارشد علوم اقتصادی دانشگاه تبریز

Received: 2015-05-11 Accepted : 2015-05-11 Published : 2011-09-23

Keywords:

Abstract :

Tourism is an activity capital, infrastructure, knowledge and access to global marketing and distribution chains are critical. Foreign direct investment (FDI) is often considered one of the most effective engines for harnessing these elements. This study applies panel causality methods to investigate the relationship between FDI and tourism in Developing Countries during 1995-2007. For this purpose, the Hsiao's- Granger and Toda & Yamamoto (TY) causality tests used for investigating causality relationship between two variables. The model estimation reveal finds that there is unilateral causality tourism to FDI. With respect to results of this study, the main implication policy is that the policy makers and economic planners should be adopting the suitable policies to improve tourism industry.

References:

 

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