The threshold effect of tourism economy development on the relationship between FDI and SIDS’ inclusive growth
Juan Wang,
Kexin Wang and
Xuanwen Ding
Current Issues in Tourism, 2023, vol. 26, issue 24, 4001-4017
Abstract:
Overseas investment and tourism economy development play important roles in the inclusive growth of small island developing states (SIDS). Taking the level of tourism economy growth as a threshold, this study explores the relationship between China’s FDI to 29 SIDS and SIDS’ inclusive growth from 2005 to 2020. This connection is investigated via the entropy method, a panel autoregressive model, and a panel threshold regression model and data from the World Bank and the Ministry of Commerce of China. Several findings emerge: (1) SIDS’ inclusive growth index demonstrated an upward trend, with PROFIT-type SIDS’ inclusive growth being highest; (2) China’s FDI to SIDS could effectively promote SIDS’ inclusive growth; and (3) tourism economic growth had a threshold effect and region–type heterogeneity within the process of FDI and SIDS’ inclusive growth. The positive impact of China’s FDI on SIDS’ inclusive growth rose by 42.308% when SIDS’ tourism receipts (% of GDP) reached 25.950%. The threshold effect was strongest in the AIMS region and was not significant in the Pacific region. A double-threshold effect applied to PROFIT-type SIDS. Additionally, the threshold effect was strongest in SITEs-type SIDS and was not significant in MIRAB-type SIDS.
Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://hdl.handle.net/10.1080/13683500.2022.2154198 (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:taf:rcitxx:v:26:y:2023:i:24:p:4001-4017
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rcit20
DOI: 10.1080/13683500.2022.2154198
Access Statistics for this article
Current Issues in Tourism is currently edited by Jennifer Tunstall
More articles in Current Issues in Tourism from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().