Effects of tourism and institutional quality on infrastructural development in Africa: new evidence from the system GMM technique

Obed I. Ojonta () and Jonathan E. Ogbuabor ()
Additional contact information
Obed I. Ojonta: University of Nigeria
Jonathan E. Ogbuabor: University of Nigeria

Business Economics, 2024, vol. 59, issue 2, No 5, 117 pages

Abstract: Abstract This study investigated how infrastructural development is responding to international tourism and institutional quality in Africa using the system GMM technique and a panel of 31 African economies from 2011 to 2020. Existing studies have generally ignored these relationships. We find that international tourism is an essential driver of infrastructural development in Africa. We also find that the quality of governance institutions significantly promotes infrastructural development in Africa when measured using government effectiveness, rule of law, and regulatory quality, but remain muted when measured using control of corruption, voice and accountability, and political stability. We highlighted the implications of these findings in terms of diversifying the economies of Africa through investments in tourism and reforming the governance institutions in the region to combat corruption, entrench transparent and accountable governance, and promote political stability. Interestingly, our findings further indicate that human capital development, GDP per capita, and remittances are important drivers of infrastructural development in Africa, while the role of foreign direct investment remained significantly negative. We provided policy recommendations based on these findings.

Keywords: Tourism; Institutional quality; Infrastructural development; System GMM; Africa (search for similar items in EconPapers)
JEL-codes: C21 E51 G51 N17 R20 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s11369-024-00355-5 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:buseco:v:59:y:2024:i:2:d:10.1057_s11369-024-00355-5

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11369

DOI: 10.1057/s11369-024-00355-5

Access Statistics for this article

Business Economics is currently edited by Charles Steindel

More articles in Business Economics from Palgrave Macmillan, National Association for Business Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().