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Japan's tourism-led foreign direct investment inflows: An empirical study

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  • Tomohara, Akinori

Abstract

This study analyzes international tourism–inward foreign direct investment (FDI) relationships by applying dynamic panel models to Japanese data for the 1996–2011 period. A growing number of studies have examined this topic following the publication of the UNCTAD (2007) report; however, the current literature is inadequate. Our analysis is not restricted to tourism-related FDI such as hotels and restaurants, as in the literature, but covers general FDI in the framework of FDI dynamics, because tourism–FDI interactions are not in reality restricted to typical tourism-related FDI. The analysis results reveal that enhanced inbound foreign tourism exhibits spillovers of inward FDI beyond tourism-related sectors. Hence, although policies related to FDI promotion and tourism enhancement are often planned, executed, and evaluated independently under different government jurisdictions, coordination is recommended, because these policies interact with each other in efforts to attain economic development goals.

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  • Tomohara, Akinori, 2016. "Japan's tourism-led foreign direct investment inflows: An empirical study," Economic Modelling, Elsevier, vol. 52(PB), pages 435-441.
    • Handle: RePEc:eee:ecmode:v:52:y:2016:i:pb:p:435-441
    DOI: 10.1016/j.econmod.2015.09.024
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    Cited by:

    1. Farah Siddiqui & Danish Ahmed Siddiqui, 2019. "Causality between Tourism and Foreign Direct Investment: An Empirical Evidence from Pakistan," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 7(1), pages 27-44, March.
    2. Hira Arain & Liyan Han & Arshian Sharif & Muhammad Saeed Meo, 2020. "Investigating the effect of inbound tourism on FDI: The importance of quantile estimations," Tourism Economics, , vol. 26(4), pages 682-703, June.
    3. Pal, Debdatta, 2022. "Does hospitality industry stock volatility react asymmetrically to health and economic crises?," Economic Modelling, Elsevier, vol. 108(C).
    4. Xiuying Ma & Yongjing Wang & Haiyan Song & Han Liu, 2020. "Time-varying mechanisms between foreign direct investment and tourism development under the new normal in China," Tourism Economics, , vol. 26(2), pages 324-343, March.
    5. K. Ravinthirakumaran & E. A. Selvanathan & S. Selvanathan & T. Singh, 2019. "Tourism and Foreign Direct Investment Inflows in Sri Lanka," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 20(2), pages 248-273, September.
    6. Char-lee Moyle & Fabrizio Carmignani & Brent Moyle & Sajid Anwar, 2021. "Beyond Dutch Disease: Are there mediators of the mining–tourism nexus?," Tourism Economics, , vol. 27(4), pages 744-761, June.
    7. Yixing Yang & Md. Qamruzzaman & Mohd Ziaur Rehman & Salma Karim, 2021. "Do Tourism and Institutional Quality Asymmetrically Effects on FDI Sustainability in BIMSTEC Countries: An Application of ARDL, CS-ARDL, NARDL, and Asymmetric Causality Test," Sustainability, MDPI, vol. 13(17), pages 1-29, September.
    8. Malik, Muhammad Yousaf & Latif, Kashmala, 2021. "Impact of outbound tourism on outward FDI," Annals of Tourism Research, Elsevier, vol. 91(C).

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