The Relationship between Foreign Direct Investment and Tourism Development: Evidence from Developing Countries

Ahmad Jafari Samimi, Somaye Sadeghi () and Soraya Sadeghi ()
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Somaye Sadeghi: Islamic Azad University Firoozkooh, Iran
Soraya Sadeghi: Islamic Azad University Firoozkooh, Iran

Institutions and Economies (formerly known as International Journal of Institutions and Economies), 2013, vol. 5, issue 2, 59-68

Abstract: This paper investigates the existence of Granger causality and co-integrated relationships between tourism related Foreign Direct Investment (FDI)and tourism development in developing countries using panel VECM techniques from 1995 to 2008. The results confirm the existence of a co-integrated relationship between variables in the long run. In addition, there is a bilateral long-run causality between tourism related FDI and tourism development, while there is no short-run causality between variables.

Keywords: developing countries; Foreign Direct Investment; panel VECM; tourism industry (search for similar items in EconPapers)
JEL-codes: E32 F21 L83 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:umk:journl:v:5:y:2013:i:2:p:59-68

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