Analysing the impact of tourism foreign direct investment on economic growth

Sheereen Fauzel, Boopen Seetanah and R.V. Sannassee
Additional contact information
Sheereen Fauzel: University of Mauritius, Mauritius
Boopen Seetanah: University of Mauritius, Mauritius
R.V. Sannassee: University of Mauritius, Mauritius

Tourism Economics, 2017, vol. 23, issue 5, 1042-1055

Abstract: The present study attempts to address the important question of whether foreign direct investment (FDI) flowing into the tourism sector has served to enhance economic growth in Mauritius for the period 1984–2014. Using a dynamic vector error correction model, and catering for dynamism, the results show that tourism FDI has indeed contributed to fostering economic growth; albeit the magnitude of the coefficient being relatively smaller than FDI in the non-tourism sector. A plausible explanation for such a finding may reside in the fact that the bulk of FDI flows in the non-tourism sectors while domestic investment predominates in the tourism sector in Mauritius. The findings also demonstrate a positive relationship between tourism development and economic growth, thus supporting the tourism-led growth hypothesis.

Keywords: economic growth; Mauritius; tourism FDI; VECM (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/1354816616664249 (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:sae:toueco:v:23:y:2017:i:5:p:1042-1055

DOI: 10.1177/1354816616664249

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().