THE ROLE OF TOURISM AND FDI IN THE ECONOMIC GROWTH OF EU11 COUNTRIES

Amin Sokhanvar ()
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Amin Sokhanvar: Ural Federal University, Graduate School of Economics and Management Yekaterinburg, Russia

Tourism and Hospitality Management, 2022, vol. 28, issue 2, 343-359

Abstract: Purpose - Tourism and FDI have contributed to a large extent to Central and Eastern European economies in recent decades. This paper investigates how successfully these two engines of growth have been stimulating the growth of these economies. Design/methodology/approach - Using a Pooled Mean Group estimation, this study investigates the short- and long-term effects of variations in the GDP shares of tourism and foreign investments on the economic growth rate. Findings - The results suggest that while tourism expansion is more effective in the short run, FDI has a significant positive impact on economic growth only in the long run. Originality - A new aspect of the present study is a comparison of the magnitude of the impacts of the GDP shares of international tourism and foreign investments on the economic growth rate in both the short and long run in the case of Central and Eastern Europe. Practical implications - Considering the economic structure of these countries, policy action plans for inclusive growth are suggested.

Keywords: International Tourism; Foreign Direct Investment; Net Exports, Economic Growth; Eastern European economies. (search for similar items in EconPapers)
JEL-codes: L83 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:tho:journl:v:28:y:2022:n:2:p:343-359

DOI: 10.20867/thm.28.2.5

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