IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxiiiy2020i3p736-756.html
   My bibliography  Save this article

Economic and Tourism Factors Affecting the Real Gross Regional Domestic Product: A Case Study

Author

Listed:
  • Nur Feriyanto

Abstract

Purpose: This study aims to investigate the relationship between Foreign Direct Investment (FDI), Domestic Investment (DI), Employment (EMP), and Number of Tourists to real Gross Regional Domestic Product (real GRDP) of the Special Region of Yogyakarta or Daerah Istimewa Yogyakarta (DIY). Design/methodology/approach: This research uses panel data modeling for the period of 2007-2019. Findings: The results show that partially DI and the number of tourists have significant positive effects on real GRDP in the region. On the other hand, EMP has significant and negative effect on real GRDP while FDI has not significant effect on real GRDP. Practical implications: Policy recommendation for government as an implication of this study to improve real GRDP of the Special Region of Yogyakarta is (a) improving the quality of education and skill of labor; (b) improving domestic investment incentive policies for local investors; (c) improving the investment climate to encourage the entry of right FDI on productive economic sectors; and (d) increasing the number of tourists arrivals in DIY through promotion and improving services in all sectors for tourists. Originality/value: Domestic Investment and number of tourists have an important role in pushing for the improvement on the real Gross Regional Domestic Product of the Special Region of Yogyakarta. Synergizing economic factors and tourism in deciding for policies can accelerate economic growth.

Suggested Citation

  • Nur Feriyanto, 2020. "Economic and Tourism Factors Affecting the Real Gross Regional Domestic Product: A Case Study," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 736-756.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:3:p:736-756
    as

    Download full text from publisher

    File URL: https://www.ersj.eu/journal/1665/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Makuyana, Garikai & Odhiambo, Nicholas M., 2017. "Public and private investment and economic growth in Zimbabwe: An empirical test," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 13(01).
    2. Antonios Adamopoulos & Eleftherios I. Thalassinos, 2020. "Tourism Development and Economic Growth: A Comparative Study for the G-6 Leaders," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 368-380.
    3. Abdelhafidh Dhrifi, 2015. "Foreign direct investment, technological innovation and economic growth: empirical evidence using simultaneous equations model," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 62(4), pages 381-400, December.
    4. Evans S. Osabuohien & Ayobami O. Soogun & Ese Urhie, 2017. "Examining the Relative Roles of Domestic and Foreign Direct Investments in Nigeria," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 365-371.
    5. Buthaina M. A. Muhtaseb & Hussam-Eldin Daoud, 2017. "Tourism and Economic Growth in Jordan: Evidence from Linear and Nonlinear Frameworks," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 214-223.
    6. Fosu, Augustin Kwasi & Getachew, Yoseph Yilma & Ziesemer, Thomas H.W., 2016. "Optimal Public Investment, Growth, And Consumption: Evidence From African Countries," Macroeconomic Dynamics, Cambridge University Press, vol. 20(8), pages 1957-1986, December.
    7. Erik Biørn & Xuehui Han, 2017. "Revisiting the FDI impact on GDP growth in errors-in-variables models: a panel data GMM analysis allowing for error memory," Empirical Economics, Springer, vol. 53(4), pages 1379-1398, December.
    8. Isaac Sánchez-Juárez & Rosa García-Almada, 2016. "Public Debt, Public Investment and Economic Growth in Mexico," IJFS, MDPI, vol. 4(2), pages 1-14, March.
    9. Nurudeen Abu & Mohd Zaini Abd Karim, 2016. "The Relationships between Foreign Direct Investment, Domestic Savings, Domestic Investment, and Economic Growth: The Case of Sub-Saharan Africa," Society and Economy, Akadémiai Kiadó, Hungary, vol. 38(2), pages 193-217, June.
    10. Fabio Mazzola & Pietro Pizzuto & Giovanni Ruggieri, 2019. "The role of tourism in island economic growth and resilience," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(7), pages 1418-1436, November.
    11. Adian A. McFarlane & Anupam Das & Murshed Chowdhury, 2014. "Non-linear dynamics of employment, output and real wages in Canada," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 41(4), pages 554-568, July.
    12. Yang Songling & Muhammad Ishtiaq & Bui Thi Thanh, 2019. "Tourism Industry and Economic Growth Nexus in Beijing, China," Economies, MDPI, vol. 7(1), pages 1-15, March.
    13. Ayamba Emmanuel Caesar & Chen HaiBo & Thomas Bilaliib Udimal & Andrew Osei-Agyemang, 2018. "Foreign Direct Investment, Growth of Output Indicators and Economic Growth in China: Empirical Evidence on Causal Links," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 315-322.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:bum:cactus:v:3:y:2021:i:1:p:16-23 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhao, Jun & Shahbaz, Muhammad & Dong, Kangyin, 2022. "How does energy poverty eradication promote green growth in China? The role of technological innovation," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    2. Mr. Yehenew Endegnanew & Dawit Tessema, 2019. "Public Investment in Bolivia: Prospects and Implications," IMF Working Papers 2019/151, International Monetary Fund.
    3. Thomas H.W. ZIESEMER, 2012. "Worker remittances and government behaviour in the receiving countries," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3, pages 37-59, December.
    4. Minhaj ud-Din & Muhammad Azam Khan & Muhammad Tariq, 2020. "External Debt - Blessing or Curse: Empirical Evidence from Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 10(4), pages 235-246.
    5. Kamila Bednarz-Okrzynska, 2024. "Evolution of Determinants of Regional Development in Selected European Union Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 1238-1247.
    6. Mohsen Bahmani‐Oskooee & Niloy Bose & Yun Zhang, 2019. "An asymmetric analysis of the J‐curve effect in the commodity trade between China and the US," The World Economy, Wiley Blackwell, vol. 42(10), pages 2854-2899, October.
    7. António Afonso & Eduardo Rodrigues, 2024. "Is public investment in construction and in R&D, growth enhancing? A PVAR approach," Applied Economics, Taylor & Francis Journals, vol. 56(24), pages 2875-2899, May.
    8. Razvan Tiberiu Radu & Alina C. Radu, 2024. "Tourism Transformed: How Netflix’s „Wednesday” Enhanced Destination Marketing in Busteni, Romania," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 325-333.
    9. Gitana Dudzevičiūtė & Vida Česnuitytė & Dalia Prakapienė, 2021. "Defence Expenditure–Government Debt Nexus in the Context of Sustainability in Selected Small European Union Countries," Sustainability, MDPI, vol. 13(12), pages 1-18, June.
    10. Mohsen Bahmani-Oskooee & Ilir Miteza & Altin Tanku, 2020. "Exchange rate changes and money demand in Albania: a nonlinear ARDL analysis," Economic Change and Restructuring, Springer, vol. 53(4), pages 619-633, November.
    11. Shreya Pal, 2024. "The International Capital Flows and Domestic Savings–domestic Investment Nexus: A Comparative Evidence Between Heterogeneous Developing Regions," South Asian Journal of Macroeconomics and Public Finance, , vol. 13(2), pages 169-212, December.
    12. Zhang Dongling & Fan Weili & Chen Jingshuai, 2019. "Technological Innovation, Regional Heterogeneity and Marine Economic Development — Analysis of Empirical Data Based on China’s Coastal Provinces and Cities," Journal of Systems Science and Information, De Gruyter, vol. 7(5), pages 437-451, October.
    13. Gerda Dewit & Dermot Leahy, 2018. "Attracting Foreign Direct Investment in Infrastructure," Economics Department Working Paper Series n290-18.pdf, Department of Economics, National University of Ireland - Maynooth.
    14. Daniel Szostak, 2021. "Creation and Promotion of Branded Tourism Products – Analysis of Selected Issues," European Research Studies Journal, European Research Studies Journal, vol. 0(4 - Part ), pages 148-154.
    15. Theodore Kahn & Zack Zimbalist, 2022. "Public investment versus government consumption: how FDI shocks shape the composition of subnational spending in Mexico," Review of International Political Economy, Taylor & Francis Journals, vol. 29(2), pages 502-537, March.
    16. Vaca Medina, Gustavo & Vaca, Jesús & Mora Pérez, César Omar, 2020. "The impact of public debt on economic growth: an empirical study of Mexico (1994–2016)," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    17. Chen, Lijun & Parcell, Joe L & Chen, Chao & James, Harvey S. Jr & Xu, Danning, 2016. "Consumer preference for supermarket food sampling in China," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236043, Agricultural and Applied Economics Association.
    18. J. Alexander Nuetah & Xian Xin, 2019. "Has China’s Investment Pattern in Sub-Saharan Africa Been Driven by Natural Resource Quest?," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 11(3), pages 215-231, September.
    19. Agnieszka Sawinska & Agnieszka Smalec, 2023. "Film Tourism in the Promotion of a Touristic Area," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 513-522.
    20. Djedje Hermann Yohou, 2015. "In Search of Fiscal Space in Africa: The Role of the Quality of Government Spending," CERDI Working papers halshs-01222812, HAL.

    More about this item

    Keywords

    Real GRDP; FDI; DI; employment; number of tourists.;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxiii:y:2020:i:3:p:736-756. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.