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THE ROLE OF TOURISM AND FDI IN THE ECONOMIC GROWTH OF EU11 COUNTRIES
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Journal Article
THE ROLE OF TOURISM AND FDI IN THE ECONOMIC GROWTH OF EU11 COUNTRIES
2022
Overview
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.
Publisher
University of Rijeka, Faculty of Tourism & Hospitality Management,Sveučilište u Rijeci, Fakultet za menadžment u turizmu i ugostiteljstvu, Opatija,Faculty of tourism and hospitality management
