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. 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.
    2. 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.
    3. 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.
    4. 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.
    5. Garikai Makuyana & Nicholas M. Odhiambo, 2017. "Public and private investment and economic growth in Zimbabwe: An empirical test," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(1), pages 60-76, March.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. 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. Mr. Yehenew Endegnanew & Dawit Tessema, 2019. "Public Investment in Bolivia: Prospects and Implications," IMF Working Papers 2019/151, International Monetary Fund.
    2. 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.
    3. 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.
    4. 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.
    5. Thomas H.W. Ziesemer, 2020. "Can we have growth when population is stagnant? Testing linear growth rate formulas of non-scale endogenous growth models," Applied Economics, Taylor & Francis Journals, vol. 52(13), pages 1502-1516, March.
    6. Presbitero, Andrea F., 2016. "Too much and too fast? Public investment scaling-up and absorptive capacity," Journal of Development Economics, Elsevier, vol. 120(C), pages 17-31.
    7. Fisayo Fagbemi, 2020. "Assessing the Role of Governance in West African Fiscal Performance," The American Economist, Sage Publications, vol. 65(1), pages 97-122, March.
    8. Issouf Samaké & Ms. Priscilla S Muthoora & Mr. Bruno Versailles, 2013. "Fiscal Sustainability, Public Investment, and Growth in Natural Resource-Rich, Low-Income Countries: The Case of Cameroon," IMF Working Papers 2013/144, International Monetary Fund.
    9. repec:aer:wpaper:328 is not listed on IDEAS
    10. Getachew, Yoseph Y. & Turnovsky, Stephen J., 2015. "Productive government spending and its consequences for the growth–inequality tradeoff," Research in Economics, Elsevier, vol. 69(4), pages 621-640.
    11. Rafael Aguirre Unceta, 2018. "Niger : la Quête du Développement dans un Contexte Adverse," Working Papers hal-02046108, HAL.
    12. Oukhallou, Youssef, 2016. "Analyzing economic growth: what role for public investment?," MPRA Paper 69772, University Library of Munich, Germany.
    13. International Monetary Fund, 2012. "Cameroon: Staff Report for the 2012 Article IV Consultation," IMF Staff Country Reports 2012/237, International Monetary Fund.
    14. Kwon, Sanguk & Cho, Seong-Hoon & Roberts, Roland Keith & Kim, Taeyoung & Yu, T. Edward, 2015. "Effects of changes in electricity price on electricity demand and resulting effects on manufacturing output," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196850, Southern Agricultural Economics Association.
    15. Hallonsten, Jan Simon & Ziesemer, Thomas, 2016. "A semi-endogenous growth model for developing countries with public factors, imported capital goods, and limited export demand," MERIT Working Papers 2016-004, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    16. Osmar Bolivar, 2022. "Multiplicadores Fiscales: Evidencia Empírica para una Asignación Costo-Efectiva de la Inversión Pública," Cuadernos de Investigación Económica Boliviana, Ministerio de Economía y Finanzas Públicas de Bolivia, vol. 5(2), pages 7-64, Diciembre.
    17. Wang, Chao & Kim, Yul-Seong & Kim, Chi Yeol, 2021. "Causality between logistics infrastructure and economic development in China," Transport Policy, Elsevier, vol. 100(C), pages 49-58.
    18. Rafael AGUIRRE UNCETA, 2018. "Niger : la Quête du Développement dans un Contexte Adverse," Working Papers P247, FERDI.
    19. Michael Mbate, 2013. "Domestic Debt, Private Sector Credit and Economic Growth in Sub‐Saharan Africa," African Development Review, African Development Bank, vol. 25(4), pages 434-446, December.
    20. Ziesemer, Thomas, 2019. "Can we have growth when population is stagnant? Testing linear growth rate formulas and their cross-unit cointegration of non-scale endogenous growth models," MERIT Working Papers 2019-021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    21. Yoshino, Naoyuki & Abidhadjaev, Umid, 2017. "An impact evaluation of investment in infrastructure: The case of a railway connection in Uzbekistan," Journal of Asian Economics, Elsevier, vol. 49(C), pages 1-11.

    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.