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The Role Of Tourism And Fdi In The Economic Growth Of Eu11 Countries

Author

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  • Amin Sokhanvar

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

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.

Suggested Citation

  • Amin Sokhanvar, 2022. "The Role Of Tourism And Fdi In The Economic Growth Of Eu11 Countries," Tourism and Hospitality Management, University of Rijeka, Faculty of Tourism and Hospitality Management, vol. 28(2), pages 343-359, August.
    • Handle: RePEc:tho:journl:v:28:y:2022:n:2:p:343-359
    DOI: https://doi.org/10.20867/thm.28.2.5
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    References listed on IDEAS

    as
    1. Makiela, Kamil & Ouattara, Bazoumana, 2018. "Foreign direct investment and economic growth: Exploring the transmission channels," Economic Modelling, Elsevier, vol. 72(C), pages 296-305.
    2. Laura Alfaro & Maggie X. Chen, 2018. "Selection and Market Reallocation: Productivity Gains from Multinational Production," American Economic Journal: Economic Policy, American Economic Association, vol. 10(2), pages 1-38, May.
    3. World Bank, 2020. "Doing Business 2020," World Bank Publications - Books, The World Bank Group, number 32436.
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    More about this item

    Keywords

    International Tourism; Foreign Direct Investment; Net Exports; Economic Growth; Eastern European economies.;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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