An Empirical Investigation between Foreign Direct Investment (FDI) and Tourism in Bangladesh

Sakib Amin (), Foqoruddin Al Kabir (), Ainy Nihad () and Farhan Khan ()

Journal of Tourism Management Research, 2020, vol. 7, issue 1, 110-121

Abstract: We examine the empirical relationship between FDI and tourism in Bangladesh by employing the annual time series data from 1972 to 2017. Standard econometric techniques, like Augmented-Dickey Fuller (ADF), Phillips-Perron (PP) and Zivot-Andrews structural break augmented unit root tests, Johansen cointegration test, Granger causality test, Vector Error Correction Model (VECM), Dynamic Ordinary Least Square (DOLS) and Autoregressive Distributed Lag (ARDL) estimation methods and Cumulative Sum (CUSUM) stability test have been applied in this paper. Variables are found to be stationary at first difference form. Furthermore, cointegration results show concerned variables are associated in the long run. We find both short run and long run causality running from FDI to tourism in the case of Bangladesh but not vice versa. From the long run estimation results of DOLS and ARDL, we find that a 1 million USD increase in FDI will increase tourism receipts by 0.065 and 0.062 million USD respectively. Our results are expected to provide guidelines to the policymakers to formulate the sustainable tourism policies in Bangladesh.

Keywords: Foreign direct investment; Tourism; Bangladesh; Zivot-Andrews unit root test; Causality; VECM; DOLS; ARDL; CUSUM (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://archive.conscientiabeam.com/index.php/31/article/view/2870/4465 (application/pdf)
https://archive.conscientiabeam.com/index.php/31/article/view/2870/4718 (text/html)

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:pkp:jotmre:v:7:y:2020:i:1:p:110-121:id:2870

Access Statistics for this article

More articles in Journal of Tourism Management Research from Conscientia Beam
Bibliographic data for series maintained by Dim Michael ().