THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENT AND TOURISM SECTOR: THE JAMAICAN CASE

Year 2021, Issue: 31, 229 - 246, 30.04.2021

Ayça Sarıalioğlu Hayali , Asiye Küçükosman , Kolee Kpartor

https://doi.org/10.18092/ulikidince.845934

Cited By: 2

Abstract

Foreign Direct Investment (FDI) and Tourism Sector are two significant factors both contributing to development, directly and indirectly, and also foreign exchange need of developing world. In this regard, the paper tries to determine if there is a relationship between FDI and tourism sector in the regard of the Jamaican case by using granger causality test. It can be said that Jamaica is a typical example, which is selected out of the developing world, in terms of both the importance of the tourism sector and FDI. According to the results within the framework of the econometric analysis, it is found out that Tourism Expenditures and FDI inflows are causally related, and the Granger causality is uni-directional running from FDI Inflows to Tourism Expenditures in the Jamaican Case. In other words, in Jamaica, FDI inflows are the cause and the tourism expenditures are the result, which can be theoretically expected. Since FDI inflows including the FDI in specifically tourism sector contribute to all the economy, by developing both tangible assets, such as infrastructure, and intangible assets, such as managerial skills of a country, it all contributes to the tourism sector as a service sector.

Keywords

Foreign Direct Investment, Tourism Sector, Granger Causality Test, the Jamaican Case

DOĞRUDAN YABANCI YATIRIM VE TURİZM SEKTÖRÜ ARASINDAKİ İLİŞKİ: JAMAİKA ÖRNEĞİ

Abstract

Doğrudan Yabancı Yatırım (DYY) ve Turizm Sektörü, hem doğrudan hem de dolaylı olarak kalkınmaya hem de gelişen dünyanın döviz ihtiyacına katkıda bulunan iki önemli faktördür. Bu bağlamda, çalışma Jamaika örneği ile ilgili olarak DYY ile turizm sektörü arasında bir ilişki olup olmadığını Granger nedensellik testi kullanarak belirlemeye çalışmaktadır. Jamaika'nın, hem turizm sektörünün hem de DYY’nin önemi açısından gelişmekte olan ülkelerden seçilen tipik bir örnek olduğu söylenebilir. Ekonometrik analiz çerçevesindeki sonuçlara göre, Turizm Harcamaları ve DYY girişlerinin nedensel olarak ilişkili olduğu ve Granger nedenselliğinin Jamaika örneğinde DYY Girişlerinden Turizm Harcamalarına doğru tek yönlü olduğu bulunmuştur. Bir başka deyişle, teorik olarak beklenebilecek şekilde Jamaika’da DYY girişleri neden, turizm harcamaları sonuçtur. Özellikle turizm sektöründeki DYY'yi içeren DYY girişleri, hem altyapı gibi somut varlıkları hem de bir ülkenin yönetimsel becerileri gibi soyut varlıkları geliştirerek tüm ekonomiye katkı sağladığından, tüm bunlar da hizmet sektörü olarak turizm sektörüne katkı sağlamaktadır.

Keywords

Doğrudan Yabancı Yatırım, Turizm Sektörü, Granger Nedensellik Testi, Jamaika Örneği

References

• Anıl, I., Armutlulu, I., Canel, C., & Porterfield, R. (2011). The Determinants of Turkish Outward Foreign Direct Investment. Modern Economy, 2, 717-728.
• Arain, H., Han, L., Sharif, A., & Meo, M. S. (2019). Investigating The Effect Of Inbound Tourism On FDI: The Importance Of Quantile Estimations. Tourism Economics, 1, 22.
• Bezuidenhout, H., & Grater, S. (2016). The Dimensions of FDI in the Tourism Sector in Africa. Journal of Applied Business Research, 32(4), 1115.
• Craigwell, R., & Moore, W. (2008). Foreign Direct Investment and Tourism in SIDS: Evidence from Panel Causality Tests. Tourism Analysis, 13(4), 427-432.
• De Mello Jr, L. R. (1997). Foreign Direct Investment in Developing Countries and Growth: A Selective Survey. The Journal of Development Studies, 34(1), 1-34.
• Dunning, J.H. (1981). International Production and the Multinational Enterprise. George Allen and Unwin, London.
• Dunning, J.H. (1988). The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions. Journal of International Business Studies, 19 (1), 1-31.
• Dunning, J.H. (1977). “Trade, Location of Economic Activity and MNE: A Search for an Eclectic Approach,” B. Ohlin, P. O. Hesselbaum and P. M. Wijkman (Eds.), The International Allocation of Economic Activity, Macmillan, 398-418.
• Dunning, J. H., & Lundan, S. M. (2008). Multinational Enterprises and The Global Economy. Edward Elgar Publishing.
• Endo, K. (2006). Foreign Direct Investment in Tourism—Flows and Volumes. Tourism Management, 27(4), 600-614.
• Eugenio-Martín, J. L., Morales, N. M., & Scarpa, R. (2004). Tourism and Economic Growth in Latin American Countries: A Panel Data Approach (No. 26.2004). Nota Di Lavoro.
• Fauzel, S. (2020). FDI and Tourism Futures: A Dynamic İnvestigation For A Panel Of Small İsland Economies. Journal of Tourism Futures.
• Ferguson, J. A., Bryan, P., Buisseret, D. J., & Black, C. V. (2020, September 10). Jamaica. Encyclopedia Britannica. https://www.britannica.com/place/Jamaica.
• Granger, C. W. (1969). “Testing for Causality and Feedback”, Econometrica, 37(3), 424-438.
• Gujarati, D. N., & Porter, D. C. (1999). Essentials of Econometrics (Vol. 2). Singapore: Irwin/Mcgraw-Hill.
• Ilie, G. (2015). Foreign Direct Investment in Tourism Sector. Knowledge Horizons-Economics, 7(3), 9-13.
• Kyrkilis, D Pantelidis, P. (2003). Macroeconomic Determinants of Outward Foreign Direct Investment. International Journal of Social Economics, 30(7), 827–836.
• Markusen, J. R. (1995). The Boundaries of Multinational Enterprises and The Theory of International Trade. The Journal of Economic Perspectives, 9(2), 169-189.
• Rajapakse, R. P. C. R. (2016). The relationship between foreign direct investment and tourism development: An analysis of Granger causality. Imperial Journal of Interdisciplinary Research (IJIR) Volume, 2, 2454-1362.
• Sadi, M. A., & Henderson, J. C. (2001). Tourism and Foreign Direct Investment in Vietnam. International Journal of Hospitality & Tourism Administration, 2(1), 67-90.
• Schwab, K. (2019). The Global Competitiveness Report 2019: World Economic Forum.
• Sharif, A., Saha, S., & Loganathan, N. (2017). Does Tourism Sustain Economic Growth? Wavelet-Based Evidence from The United States. Tourism Analysis, 22(4), 467-482.
• Şahbaz, A., & Mızırak, Z. (2017). Turizm Gelirleri Ve Doğrudan Yabancı Yatırımlar Arasındaki Ilişki: Türkiye Örneği. Sosyal ve Ekonomik Arastırmalar Dergisi, 19(32), 107-114.
• Tang, S., Selvanathan, E. A., & Selvanathan, S. (2007). The Relationship Between Foreign Direct Investment and Tourism: Empirical Evidence from China. Tourism Economics, 13(1), 25-39.
• Turner, R. (2018). Economic Impact 2018. World Travel and Tourism Council Report.
• UNCTAD (1998). World Investment Report 1998—Trends and Determinants. United Nations Conference on Trade and Development, New York and Geneva.
• UNCTAD (2001). World Investment Report 2001: Promoting Linkages. United Nations Conference on Trade and Development, New York and Geneva.
• UNCTAD (2004). World Investment Report 2004: The Shift Towards Services. United Nations Conference on Trade and Development, New York and Geneva.
• UNCTAD (2007a). FDI in Tourism: The Development Dimension. Geneva. http://www.unctad.org/en/docs/ 4.
• UNCTAD (2007b). World Investment Report: Transnational Corporations, Extractive Industries and Development. United Nations Conference on Trade and Development, New York and Geneva.
• UNCTAD (2008a). FDI and Tourism: The Development Dimension. http://www.unctad.org
• UNCTAD (2008). FDI In Tourism: The Development Dimension-UNCTAD Current Studies on FDI And Development No. 4. United Nations Conference on Trade and Development, Geneva.
• UNCTAD (2019). World Investment Report 2019: Special Economic Zones. United Nations Conference on Trade and Development, Geneva.
• UNCTAD. (2020). World Investment Report 2020: International Production Beyond the Pandemic.
• Yamak, R., & Erdem, H. F. (2017). Uygulamalı Zaman Serisi Analizleri, Eviews Uygulamalı. Trabzon: Celepler Matbaa.
• Yunis, E. (2008). Attracting FDI With Good CSR Practices in The Tourism Sector. Responsible Enterprise, Foreign Direct Investment and Investment Promotion, 99.
• Williams, D. A., & Deslandes, D. (2008). Motivation for Service Sector Foreign Direct Investments in Emerging Economies: Insights from The Tourism Industry in Jamaica. The Round Table, 97(396), 419-437.