An empirical analysis of the impact of foreign direct investment on tourism development: the Mauritian case

• Boopen Seetanah ^[1] ; Sheereen Fauzel ^[1]
  1. [1] University of Mauritius

     University of Mauritius

     Mauricio

     
• Localización: Tourism analysis, ISSN 1083-5423, Vol. 24, Nº. 4, 2019, págs. 517-529
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • This article investigates the link between foreign direct investment (FDI) and tourism development for the case of the small island economy of Mauritius for the period 1980–2015. The research employs a dynamic time series econometrics framework, namely a vector error correction model (VECM), to account for potential dynamic and endogenous relationship in the FDI–tourism nexus. Analysis of the finding shows that FDI has a positive and significant effect, albeit relatively lower compared to the other classical factors of tourism development, in the long run. Interestingly, a bicausal effect is observed in the long run while an indirect link between FDI and tourism development via the economic growth channel is found.