International Journal of Allied Sciences (IJAS)

TOURISM AND ECONOMIC GROWTH MODERATED BY FOREIGN DIRECT INVESTMENT AND EXCHANGE RATE IN SELECTED AFRICAN ECONOMIES.

Authors

  • Okwo, Glory Department of Economics, Delta State University, Abraka, Nigeria.
  • Awogbemi, Titus Olufemi Department of Economics, Delta State University, Abraka, Nigeria
  • Egbon, Peter Chukwuyem Department of Economics, Delta State University, Abraka, Nigeria.

Abstract

This study used panel data from 1995 to 2022 for seven African countries (Nigeria, Tunisia, Kenya, Tanzania, South Africa, Morocco, and Mauritius) and the vector autoregressive (VAR) technique to examine the relationship between tourism and economic growth moderated by foreign direct investment and exchange rate. The variables for the study are tourism receipts (TR), tourist arrivals (TAR), exchange rate (EXR), foreign direct investment (FDI), and GDP as a proxy for economic growth. Findings from the study revealed that tourism receipts of the selected countries at various lags had a positive and non-significant effect on the economies in the short-run. In contrast, tourism receipts at various lags positively and significantly impacted the countries' economic growth in the long- run. Tourist arrivals at various lags reveal a negative and non-significant effect on economic growth in the short-run, while in the long-run, tourist arrivals at various lags had a positive and significant impact on the growth of the economies. The moderating effect of exchange rate and foreign direct investment on tourism were positive and significant both in the short and long run. while in the long-run period, tourism receipts at various lags had a positive and significant effect on economic growth of the countries. Tourist arrivals at various lags reveal a negative and non-significant effect on economic growth in the short-run, while in the long-run period, tourist arrivals at various lags had a positive and significant impact on the growth of the economies. The moderating effect of exchange rate and foreign direct investment on tourism were positive and significant both in the short and long-run. The study recommended that African leaders work together to coordinate policy initiatives to maximize the potential of tourism on the continent to combat unemployment and poverty and promote sustainable growth

Author Biographies

Okwo, Glory, Department of Economics, Delta State University, Abraka, Nigeria.

• Glory OKWO is a senior lecturer at the Delta State Maritime Polytechnic Burutu and a PhD student in the Department of Economics at the Delta State University Abraka, a member of the Nigerian Economic Society (NES), she has published in national and international journals. She has served in several capacities as head of department in the School of Maritime Transport and Business Studies and is currently the Director of Skills and Development.

Awogbemi, Titus Olufemi , Department of Economics, Delta State University, Abraka, Nigeria

• Dr. Titus Olufemi AWOGBEMI is a Senior Lecturer in the Department of Economics Delta State University Abraka, an associate professor. He has served the university in several capacities, viz; Member, Business Committee of Senate, Chairman, Business Committee of the Faculty of the Social Sciences, Representative of the Faculty of the Social Sciences to the Faculty of Education, Coordinator, Postgraduate Programme in Economics (PhD, MSc, Masters in Energy and Petroleum Economics (MEPE), Postgraduate Diploma in Petroleum Economics (PGDPE) and Level Adviser. He has taught several courses in the Department; Statistics, Mathematics of Economics, Economic Planning, Taxation, and Fiscal Policy

Egbon, Peter Chukwuyem, Department of Economics, Delta State University, Abraka, Nigeria.

• Peter Chukwuyem EGBON is a Professor of Economics at Delta State University, Abraka, Delta State. a life member of the Nigerian Economic Society (NES), has published widely in both National and International scholarly Journals. He has also written and edited peer-reviewed monographs and books in Economics. He has taught and researched the following areas of Economics: Applied Econometrics, Project Analysis and Evaluation, Environmental Economics, Development Economics, and Economic Theory. He has been an external examiner at various Nigerian universities.

Keywords:

Tourism, Growth, African Countries, Vector error correction Model, JEL Classification: C18, O55, Z32

Downloads

Published

2024-09-11

DOI:

https://doi.org/10.5281/zenodo.1374928

Issue

Vol. 15 No. 9 (2024): September

Section

Articles

How to Cite

Okwo, G., Awogbemi, T. O., & Egbon, P. C. (2024). TOURISM AND ECONOMIC GROWTH MODERATED BY FOREIGN DIRECT INVESTMENT AND EXCHANGE RATE IN SELECTED AFRICAN ECONOMIES. International Journal of Allied Sciences (IJAS), 15(9), 15–29. https://doi.org/10.5281/zenodo.1374928

License

Copyright (c) 2024 Okwo, Glory, Awogbemi, Titus Olufemi , Egbon, Peter Chukwuyem

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

References

Balaguer, L., & Cantavella-Jorda, M. (2002). Tourism as a long-run economic growth factor: The Spanish case. Applied Economics, 34, 877-884. http://dx.doi.org/10.1080/00036840110058923

Balsalobre-Lorente, D. Lorente, D., Driha, O. M., & Sinha, A. (2020). The dynamic effects of globalization process in analysing N-shaped tourism led growth hypothesis. J Hosp Tour Manag.43:42–52.

Brida, J. G., Cortes-Jimenez, I., &Pulina, M. (2016). Has the tourism-led growth hypothesis been validated? A literature review Current Issues in Tourism (5), 394–430.

Cortés-Jiménez, I., Pulina, M., Prunera, C., & Artis, M. (2009). Tourism and exports as a means of growth. Research Institute of Applied Economics, Working Papers, pp. 1-28.

Cortés-Jiménez, I., Pulina, M., Prunera, C., & Artis, M. (2009). Tourism and exports as a means of growth. Research Institute of Applied Economics, Working Papers, pp. 1-28.

Dritsakis, N. (2004). Tourism as a long-run economic growth factor: An empirical investigation for Greece. Tourism Economics, 10, 305-316. http://dx.doi.org/10.5367/0000000041895094

Fredman, P., and Tyrväinen, L. (2010). Frontiers in nature-based tourism. Scandinavian Journal of Hospitality and Tourism, 10(3), 177–189.

International LabourOrganisation (ILO) (2011). Toolkit on Poverty Reduction through Tourism in Rural area, cartaloguing in publication data, Geneva.

Kibara, O., Odhiiambo, N., & Njuguna. (2012). Tourism and economic growth in Kenya: An empirical investigation. International Business & Economics Research Journal, 11(5), 517-528.

Kim, H. J., Chen, M. H., & Jang, S. S. (2006). Tourism expansion and economic development: The case of Taiwan. Tourism Management, 27, 925-933. http://dx.doi.org/10.1016/j.tourman.2005.05.011

Landry S. (2018). Africa Growth Initiative: Africa's tourism potential Trends, drivers, opportunities, and strategies. Africas-tourism-potential_LandrySigne1.pdf

Mulok, D., Mansur, K., Kogid, M., Asid, R., & Lily, J. (2012). Are tourism and economic growth cointegrated? Evidence from ARDL Pounds Testing Approach. BIMP-EAGA Conference 2012.

Oh, C. O. (2005). The contribution of tourism development to economic growth in the Korean economy. Tourism Management, 26, 39-44. http://dx.doi.org/10.1016/j.tourman.2003.09.014

Simms, A. 2005. “Tourism: Creating a Framework for a Vehicle for Economic Development in Underdeveloped Societies.” (MA Thesis). Brown University.

Srinivasan, P., Kumar, S., & Ganesh, L. (2012). Tourism and economic growth in Sri Lanka: An ARDL bounds testing approach. The Romanian Journal, XV(45). http://dx.doi.org/10.1177/0975425312473234

Yalcinkaya, O., Dastan, M. and Karabulut, K., 2018. The effects of international tourism receiptson economic growth: Evidence from the First 20 highest income earning countries from tourism in the world (1996-2016). Montenegrin Journal of Economics, 14(3), pp. 55-71

Similar Articles

<< < 1 2 3 4 > >> 

You may also start an advanced similarity search for this article.