Research Article
BibTex RIS Cite
Year 2023, Volume: 11 Issue: 2, 277 - 293, 01.06.2023
https://doi.org/10.30519/ahtr.978221

Abstract

References

  • Acemoglu, D., & Johnson, S. (2005). Unbundling institutions. Journal of Political Economy, 113(5), 949-995.
  • Acemoglu, D., & Robinson, J. A. (2013). Why nations fail: the origins of power, prosperity, and poverty. New York: Crown.
  • Acemoğlu, D., Johnson, S., & Robinson, J. A. (2006). Institutions as a Fundamental Cause of long-run growth. In P. A. (eds), Handbook of Economic Growth (pp. 386-472). North Holland.
  • Adedoyin, F. F., Erum, N. & Bekun, F. V. (2021). How does institutional quality moderates the impact of tourism on economic growth? Startling evidence from high earners and tourism-dependent economies. Tourism Economics, 28(5), 1311-1332.
  • Ahmad, N., & Ma, X. (2021). How does tourism development affect environmental pollution?. Tourism Economics, 1-27. https://doi.org/10.1177/13548166211000480
  • Atsız, O., Öğretmenoğlu, M. & Akova, O. (2022a). Understanding online heritage destination image through user-generated content. In D. Gursoy & R. P. Singh Kaurav (Eds.), Handbook on Tourism and Social Media (pp. 52-67). Chelmsford: Edward Elgar.
  • Atsız, O., Ramkissoon, H., & Öğretmenoğlu, M. (2022b). Yoga travellers’ experiences in guided tours: a multiple case study approach. Current Issues in Tourism, 1-7. https://doi.org/10.1080/13683500.2022.2032616
  • Arslanturk, Y., Balcilar, M., & Ozdemir, Z. A. (2011). Time-varying linkages between tourism receipts and economic growth in a smallopen economy. Economic Modelling, 664-671
  • Bassil, C., Hamadeh, M., & Samara, N. (2015). The tourism led growth hypothesis: The Lebanese case. Tourism Review, 70(1), 43-55.
  • Butkiewicz, J. L., & Yanikkaya, H. (2006). Institutional quality and economic growth: Maintenance of the rule of law or democratic institutions, or both? Economic Modelling 23(4), 648-661.
  • Cannonier, C., & Burke, M. G. (2019). The economic growth impact of tourism in small island developing states—evidence from the Caribbean. Tourism Economics,25(1), 85–108.
  • Chaisumpunsakul, W., & Pholphirulb, P. (2018). Does international trade promote international tourism demand? Evidence from Thailand's trading partners. Kasetsart Journal of Social Sciences, 39(3), 393-400.
  • Chaudhry, I. S., Nazar, R., Ali, S., Meo, M. S., & Faheem, M. (2021). Impact of environmental quality, real exchange rate and institutional performance on tourism receipts in East-Asia and Pacific region. Current Issues in Tourism, 25(4), 611-631. DOI: 10.1080/13683500.2021.1894101.
  • Chavance, B. (2009). Institutional Economics. Oxon: Routledge.
  • Das, J., & Dirienzo, C. (2010). Tourism competitiveness and corruption: a cross-country analysis. Tourism Economics, 6(3), 477–492.
  • Deng, T., & Hu, Y. (2019). Modelling China’s outbound tourist flow to the ‘Silk Road’: A spatial econometric approach. Tourism Economics,25(8), 1167–1181.
  • Detotto, C., Giannoni, S., & Goavec, C. (2021). Does good governance attract tourists? Tourism Management, 82, 104155.
  • Ekanayake, E. M., & Long, A. E. (2012). Tourism development and economic growth in developing countries. The International Journal of Business and Finance Research, 6(1), 61-63.
  • Eleftheriou, K., & Sambracos, E. (2019). Tourism–growth nexus and spatial spillovers: Evidence from Greece. Tourism Economics, 25(2), 297–302.
  • Eilat, Y., & Einav, L. (2004). Determinants of international tourism: a three-dimensional panel data analysis. Applied Economics, 36, 1315–1327.
  • Ghalia, T., Fidrmuc, J., Samargandi, N., & Sohag, K. (2019). Institutional quality, political risk and tourism. Tourism Management Perspectives, 32, 100576.
  • Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics (5th ed.). New York: McGraw-Hill.
  • Habibi, F., & Ahmadzadeh, K. (2015). Tourism development, trade openness and economic growth: the case of Malaysia. European Journal of Economics, Finance and Administrative Sciences,78, 129-139.
  • Haggard, S., MacIntyre, A., & Tiede, L. (2008). The rule of law and economic development. Annual Review of Political Science, 11, 205-234.
  • Khan, R.E.A., Ahmad, T.I., & Haleem, J. (2021). The governance and tourism: A case of developing countries. Asian Journal of Economic Modelling, 9(3), 199-213.
  • Klein, P. G. (1998, July). New Institutional Economics. Available at SSRN: https://ssrn.com/abstract=115811 or http://dx.doi.org/10.2139/ssrn.115811
  • Law, S., & Azman-Saini, W. (2012). Institutional quality, governance, and financial development. Economics of Governance, 217-236.
  • Lea, J. (1988). Tourism and Development in the Third World. New York: Routledge.
  • Lee, S. (2015). Research note: Quality of government and tourism destination competitiveness. Tourism Economics, 21(4), 881–888.
  • Leitão, N. C. (2010). Does trade help to explain tourism demand? The case of Portugal. Theoretical and Applied Economics, 17(3), 63-74.
  • Marcelin, I., & Mathur, I. (2015). Privatization, financial development, property rights and growth. Journal of Banking & Finance, 50, 528-546.
  • March, J., & Olsen, J. (2006). Elaborating the ‘‘New Institutionalism’’. In R. Goodin (Ed.), The Oxford Handbook of Political Institutions (pp. 3-23). New York: Oxford University Press.
  • Ming, Y., & Liu, N. (2021). Political uncertainty in the tourism industry: evidence from China’s anti-corruption campaign. Current Issues in Tourism, 24(18), 2573-2587. DOI: 10.1080/13683500.2020.1852195.
  • Mushtaq, R., Thoker, A. A., & Bhat, A. A. (2020). Does institutional quality affect tourism demand? Evidence from India. Journal of Hospitality and Tourism Insights, 4(5), 622-638.
  • North, D. C. (1994). Economic Performance through Time. American Economic Review, 84(3), 359–95.
  • North, D. C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.
  • Nyasha, S. & Odhiambo, N. M. (2021). Determinants of tourism development: Empirical evidence from three developing countries. Economia Internazionale / International Economics, 74(3), 335-368.
  • Pesaran, M. H. (2007). A simple panel unit root test in the presence of coss-section dependence. Journal of Applied Econometrics, 22, 265–312.
  • Pesaran, M. H., & Smith, R. (1995). Estimating long-run relationship from dynamic heterogeneous panels. Journal of Econometrics, 68(1), 79–113.
  • Pesaran, M. H., Shin, Y., & Smith, R. P. (1999). Pooled mean group estimation of dynamic heterogeneous panels. Journal of the American Statistical Association, 94, 621–34.
  • Poprawe, M. (2015). A panel data analysis of the effect of corruption on tourism. Applied Economics, 47(23), 2399-2412.
  • Puah, C.-H., Huan, S.-H., & Thien, F.-T. (2018). Determinants of Chinese demand for tourism in Malaysia. Business and Economic Horizons, 14(3), 501-512.
  • Roxas, B., & Chadee, D. (2013). Effects of formal institutions on the performance of the tourism sector in the Philippines: The mediating role of entrepreneurial orientation. Tourism Management, 37, 1-12.
  • Rutherford, M. (1994). Institutions in Economics: The old and the new institutionalism. Cambridge: Cambridge University Press.
  • Schmoller, G. (1900). Principes d’économie politique, vol. 1 (Grundriss der allgemeinen Volkswirtschaftlehre, vol. 1). Paris: Giard et Brière.
  • Seetanah, B. (2019). Telecommunication and tourism development: an island perspective. Tourism Review, 74(4), 815-829.
  • Slesman, L., Baharumshah, A. Z., & Ra'ees, W. (2015). Institutional infrastructure and economic growth in member countries of the Organization of Islamic Cooperation. Economic Modelling, 51, 214-226.
  • Smeral, E. (2015). Measuring the economic impact of tourism: the case of Lower and Upper Austria. Tourism Review, 70(4),289-297.
  • Stauvermann, P. J., Kumar, R. R., Shahzad, S. J., & Kumar, N. N. (2018). Effect of tourism on economic growth of Sri Lanka: accounting for capital per worker, exchange rate and structural breaks. Economic Change and Restructuring,49-68.
  • Stensnes, K. (2006). Trade Openness and Economic Growth: Do Institutions Matter? Oslo: Norwegian Institute for International Affairs (NUPI).
  • Tang, C. F. (2018). The impacts of governance and institutions on inbound tourism demand: evidence from a dynamic panel data study. Asia Pacific Journal of Tourism Research, 1000-1007.
  • Telfer, D. J., & Sharpley, R. (2008). Tourism and Development in the Developing World. Oxon: Routledge.
  • Thompson, C. G., Rae, S. K., Aloe, A. M., & Becker, B. J. (2017). Extracting the variance inflation factor and other multicollinearity diagnostics from typical regression results. Basic and Applied Social Psychology, 39(2), 81-90.
  • UN. (2020, August). Policy Brief: COVID-19 and Transforming Tourism. UN.
  • UNWTO. (2008). International Recommendations for Tourism Statistics. New York: United Nations.
  • Westerlund, J. (2008). Panel Cointegration Tests of the Fisher Effect. Journal of Applied Econometrics, 23, 193-233.
  • Wong, T. & Tang, T.C. (2010). Tourism and openness to trade in Singapore: evidence using aggregate and country-level data. Tourism Economics, 16(4), 965-980.
  • WTTC. (2019). The Importance of Travel & Tourism in 2019. World Travel & Tourism Council.
  • Yap, G., & Saha, S. (2013). Do political instability, terrorism, and corruption have deterring effects on tourism development even in the presence of UNESCO heritage? A cross- country panel estimate. Tourism Analysis, 18, 587-599.

The Nexus between Tourism Sector Performance and Institutional Quality: Evidence from Ten Most-Visited Developing Countries

Year 2023, Volume: 11 Issue: 2, 277 - 293, 01.06.2023
https://doi.org/10.30519/ahtr.978221

Abstract

The nexus between tourism sector performance and the quality of institution have been widely studied by several researchers. However, based on the knowledge of the authors of this study, no research has investigated the impact of institutional quality and trade openness as an economic institution on tourism development for most-visited developing countries. In this context, the target of this study was to empirically examine the link between the quality of the institutional structure and tourism sector development for 10 developing countries for the period 2001 to 2018. To achieve this objective, the panel data approach was preferred and adopted as it provides the advantage of including more observations. The results obtained indicate that an increment of 1% in trade volume and institutional quality increased tourism arrivals by 1.29% and 0.38%, respectively.

References

  • Acemoglu, D., & Johnson, S. (2005). Unbundling institutions. Journal of Political Economy, 113(5), 949-995.
  • Acemoglu, D., & Robinson, J. A. (2013). Why nations fail: the origins of power, prosperity, and poverty. New York: Crown.
  • Acemoğlu, D., Johnson, S., & Robinson, J. A. (2006). Institutions as a Fundamental Cause of long-run growth. In P. A. (eds), Handbook of Economic Growth (pp. 386-472). North Holland.
  • Adedoyin, F. F., Erum, N. & Bekun, F. V. (2021). How does institutional quality moderates the impact of tourism on economic growth? Startling evidence from high earners and tourism-dependent economies. Tourism Economics, 28(5), 1311-1332.
  • Ahmad, N., & Ma, X. (2021). How does tourism development affect environmental pollution?. Tourism Economics, 1-27. https://doi.org/10.1177/13548166211000480
  • Atsız, O., Öğretmenoğlu, M. & Akova, O. (2022a). Understanding online heritage destination image through user-generated content. In D. Gursoy & R. P. Singh Kaurav (Eds.), Handbook on Tourism and Social Media (pp. 52-67). Chelmsford: Edward Elgar.
  • Atsız, O., Ramkissoon, H., & Öğretmenoğlu, M. (2022b). Yoga travellers’ experiences in guided tours: a multiple case study approach. Current Issues in Tourism, 1-7. https://doi.org/10.1080/13683500.2022.2032616
  • Arslanturk, Y., Balcilar, M., & Ozdemir, Z. A. (2011). Time-varying linkages between tourism receipts and economic growth in a smallopen economy. Economic Modelling, 664-671
  • Bassil, C., Hamadeh, M., & Samara, N. (2015). The tourism led growth hypothesis: The Lebanese case. Tourism Review, 70(1), 43-55.
  • Butkiewicz, J. L., & Yanikkaya, H. (2006). Institutional quality and economic growth: Maintenance of the rule of law or democratic institutions, or both? Economic Modelling 23(4), 648-661.
  • Cannonier, C., & Burke, M. G. (2019). The economic growth impact of tourism in small island developing states—evidence from the Caribbean. Tourism Economics,25(1), 85–108.
  • Chaisumpunsakul, W., & Pholphirulb, P. (2018). Does international trade promote international tourism demand? Evidence from Thailand's trading partners. Kasetsart Journal of Social Sciences, 39(3), 393-400.
  • Chaudhry, I. S., Nazar, R., Ali, S., Meo, M. S., & Faheem, M. (2021). Impact of environmental quality, real exchange rate and institutional performance on tourism receipts in East-Asia and Pacific region. Current Issues in Tourism, 25(4), 611-631. DOI: 10.1080/13683500.2021.1894101.
  • Chavance, B. (2009). Institutional Economics. Oxon: Routledge.
  • Das, J., & Dirienzo, C. (2010). Tourism competitiveness and corruption: a cross-country analysis. Tourism Economics, 6(3), 477–492.
  • Deng, T., & Hu, Y. (2019). Modelling China’s outbound tourist flow to the ‘Silk Road’: A spatial econometric approach. Tourism Economics,25(8), 1167–1181.
  • Detotto, C., Giannoni, S., & Goavec, C. (2021). Does good governance attract tourists? Tourism Management, 82, 104155.
  • Ekanayake, E. M., & Long, A. E. (2012). Tourism development and economic growth in developing countries. The International Journal of Business and Finance Research, 6(1), 61-63.
  • Eleftheriou, K., & Sambracos, E. (2019). Tourism–growth nexus and spatial spillovers: Evidence from Greece. Tourism Economics, 25(2), 297–302.
  • Eilat, Y., & Einav, L. (2004). Determinants of international tourism: a three-dimensional panel data analysis. Applied Economics, 36, 1315–1327.
  • Ghalia, T., Fidrmuc, J., Samargandi, N., & Sohag, K. (2019). Institutional quality, political risk and tourism. Tourism Management Perspectives, 32, 100576.
  • Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics (5th ed.). New York: McGraw-Hill.
  • Habibi, F., & Ahmadzadeh, K. (2015). Tourism development, trade openness and economic growth: the case of Malaysia. European Journal of Economics, Finance and Administrative Sciences,78, 129-139.
  • Haggard, S., MacIntyre, A., & Tiede, L. (2008). The rule of law and economic development. Annual Review of Political Science, 11, 205-234.
  • Khan, R.E.A., Ahmad, T.I., & Haleem, J. (2021). The governance and tourism: A case of developing countries. Asian Journal of Economic Modelling, 9(3), 199-213.
  • Klein, P. G. (1998, July). New Institutional Economics. Available at SSRN: https://ssrn.com/abstract=115811 or http://dx.doi.org/10.2139/ssrn.115811
  • Law, S., & Azman-Saini, W. (2012). Institutional quality, governance, and financial development. Economics of Governance, 217-236.
  • Lea, J. (1988). Tourism and Development in the Third World. New York: Routledge.
  • Lee, S. (2015). Research note: Quality of government and tourism destination competitiveness. Tourism Economics, 21(4), 881–888.
  • Leitão, N. C. (2010). Does trade help to explain tourism demand? The case of Portugal. Theoretical and Applied Economics, 17(3), 63-74.
  • Marcelin, I., & Mathur, I. (2015). Privatization, financial development, property rights and growth. Journal of Banking & Finance, 50, 528-546.
  • March, J., & Olsen, J. (2006). Elaborating the ‘‘New Institutionalism’’. In R. Goodin (Ed.), The Oxford Handbook of Political Institutions (pp. 3-23). New York: Oxford University Press.
  • Ming, Y., & Liu, N. (2021). Political uncertainty in the tourism industry: evidence from China’s anti-corruption campaign. Current Issues in Tourism, 24(18), 2573-2587. DOI: 10.1080/13683500.2020.1852195.
  • Mushtaq, R., Thoker, A. A., & Bhat, A. A. (2020). Does institutional quality affect tourism demand? Evidence from India. Journal of Hospitality and Tourism Insights, 4(5), 622-638.
  • North, D. C. (1994). Economic Performance through Time. American Economic Review, 84(3), 359–95.
  • North, D. C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.
  • Nyasha, S. & Odhiambo, N. M. (2021). Determinants of tourism development: Empirical evidence from three developing countries. Economia Internazionale / International Economics, 74(3), 335-368.
  • Pesaran, M. H. (2007). A simple panel unit root test in the presence of coss-section dependence. Journal of Applied Econometrics, 22, 265–312.
  • Pesaran, M. H., & Smith, R. (1995). Estimating long-run relationship from dynamic heterogeneous panels. Journal of Econometrics, 68(1), 79–113.
  • Pesaran, M. H., Shin, Y., & Smith, R. P. (1999). Pooled mean group estimation of dynamic heterogeneous panels. Journal of the American Statistical Association, 94, 621–34.
  • Poprawe, M. (2015). A panel data analysis of the effect of corruption on tourism. Applied Economics, 47(23), 2399-2412.
  • Puah, C.-H., Huan, S.-H., & Thien, F.-T. (2018). Determinants of Chinese demand for tourism in Malaysia. Business and Economic Horizons, 14(3), 501-512.
  • Roxas, B., & Chadee, D. (2013). Effects of formal institutions on the performance of the tourism sector in the Philippines: The mediating role of entrepreneurial orientation. Tourism Management, 37, 1-12.
  • Rutherford, M. (1994). Institutions in Economics: The old and the new institutionalism. Cambridge: Cambridge University Press.
  • Schmoller, G. (1900). Principes d’économie politique, vol. 1 (Grundriss der allgemeinen Volkswirtschaftlehre, vol. 1). Paris: Giard et Brière.
  • Seetanah, B. (2019). Telecommunication and tourism development: an island perspective. Tourism Review, 74(4), 815-829.
  • Slesman, L., Baharumshah, A. Z., & Ra'ees, W. (2015). Institutional infrastructure and economic growth in member countries of the Organization of Islamic Cooperation. Economic Modelling, 51, 214-226.
  • Smeral, E. (2015). Measuring the economic impact of tourism: the case of Lower and Upper Austria. Tourism Review, 70(4),289-297.
  • Stauvermann, P. J., Kumar, R. R., Shahzad, S. J., & Kumar, N. N. (2018). Effect of tourism on economic growth of Sri Lanka: accounting for capital per worker, exchange rate and structural breaks. Economic Change and Restructuring,49-68.
  • Stensnes, K. (2006). Trade Openness and Economic Growth: Do Institutions Matter? Oslo: Norwegian Institute for International Affairs (NUPI).
  • Tang, C. F. (2018). The impacts of governance and institutions on inbound tourism demand: evidence from a dynamic panel data study. Asia Pacific Journal of Tourism Research, 1000-1007.
  • Telfer, D. J., & Sharpley, R. (2008). Tourism and Development in the Developing World. Oxon: Routledge.
  • Thompson, C. G., Rae, S. K., Aloe, A. M., & Becker, B. J. (2017). Extracting the variance inflation factor and other multicollinearity diagnostics from typical regression results. Basic and Applied Social Psychology, 39(2), 81-90.
  • UN. (2020, August). Policy Brief: COVID-19 and Transforming Tourism. UN.
  • UNWTO. (2008). International Recommendations for Tourism Statistics. New York: United Nations.
  • Westerlund, J. (2008). Panel Cointegration Tests of the Fisher Effect. Journal of Applied Econometrics, 23, 193-233.
  • Wong, T. & Tang, T.C. (2010). Tourism and openness to trade in Singapore: evidence using aggregate and country-level data. Tourism Economics, 16(4), 965-980.
  • WTTC. (2019). The Importance of Travel & Tourism in 2019. World Travel & Tourism Council.
  • Yap, G., & Saha, S. (2013). Do political instability, terrorism, and corruption have deterring effects on tourism development even in the presence of UNESCO heritage? A cross- country panel estimate. Tourism Analysis, 18, 587-599.
There are 59 citations in total.

Details

Primary Language English
Subjects Tourism (Other)
Journal Section Research Article
Authors

Betül Pişkin 0000-0002-1589-8947

Mert Öğretmenoğlu 0000-0003-0639-4891

Early Pub Date May 2, 2023
Publication Date June 1, 2023
Submission Date August 3, 2021
Published in Issue Year 2023 Volume: 11 Issue: 2

Cite

APA Pişkin, B., & Öğretmenoğlu, M. (2023). The Nexus between Tourism Sector Performance and Institutional Quality: Evidence from Ten Most-Visited Developing Countries. Advances in Hospitality and Tourism Research (AHTR), 11(2), 277-293. https://doi.org/10.30519/ahtr.978221


Follow us on our journal's social media account

 social-network-fb-logo-facebook-icon.png