The Effect of Types of Capital on the Development of Tourism Industry in the Selected Countriesry

Document Type : Research Paper

Authors

1 Ph.D Student in Economics, Department of Economics, Faculty of Humanities, Miyaneh branch, Islamic Azad University, Miyaneh, Iran.

2 Professor, Department of Economics, Faculty of Social Science and Economics, Alzahra University

3 Assistant Professor, Department of governmental management, Faculty of Humanities, Miyaneh branch, Islamic Azad University, Miyaneh, Iran.

Abstract

The tourism industry is one of the largest and most diversified industries in the world, and is the most important source of income and job creation in many countries. Therefore, estimating the determinants of tourism development is important in economic studies. In this regard, the present study uses panel data and generalized moment method to investigate the impact of capital types including natural capital, physical capital, human capital, financial capital, innovation and foreign direct capital on the development of tourism industry in two groups of selected countries of developing and developed and emerging during the period 2007-2017. The results of the estimation model showed that 1% increase in accumulation of natural capital, physical capital, human capital, financial capital, innovation and foreign direct capital increases the international tourism revenue in developing selected countries by 0.063%, 0.181%, 0.052%, 0.089%, 0.128% and 0.066% respectively. Also, 1% increase in accumulation of natural capital, physical capital, human capital, financial capital, innovation and foreign direct capital increases international tourism revenue in developed and emerging selected countries by 0.113%, 0.104%, 0.080%, 0.055%, 0.091% and 0.118% respectively. In addition, the effect of control variables including globalization, political stability and real exchange rate on the development of tourism industry in both groups of countries are positive and significant.

Keywords


Arellano, M. & Bond, S. (1991). Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations. Review of Economic Studies, 58(2): 277-297.
Balaguer, J. & Cantavella-Jorda, M. (2002). Tourism as a Long-run Economic Growth Factor: The Spanish Case. Applied Economics, 34(7): 877-884.
Brelik, A. (2018). Globalization in Tourism. Proceedings of the 2018 International Conference “Economic Science for Rural Development” No 47 Jelgava, LLU ESAF, 9 11 May 2018, 42-48.
Butcher, G., Fairweather, J. R. & Simmons, D. G. (2003). The Economic Impact of Tourism on Christchurchcity and Akaroa Township. Journal of Economic Dynamics and Control, 11: 211-200.
Cai, Z., Wang, Q. & Liu, G. (2014). Modeling the Natural Capital Investment on Tourism Industry Using a Predator-prey Model. Advances in Computer Science and its Applications, 26(4): 751-756.
Chang, W. C. (2009). Social Capital and Subjective Happiness in Taiwan. International Journal of Socio Economic, 36(8): 844-868.
Chhorn, T. (2017). On the Investigation of Factors Effecting International Tourist Arrivals to Cambodian Market: A Static and Dynamic Gravity Approach. https://mpra.ub.uni-muenchen.de/83813/1/MPRA_paper_83813.pdf.
Hajiyeva, L. & Teymurova, V. (2019). Analysis of the Impact Human Capital on Tourism Development in Azerbaijan. Conference: 37th International Scientific Conference on Economic and Social Development. Socio Economic Problems of Sustainable Development, At Azerbaijan, UNEC.
Ingram, H., Tabari, S. & Watthanakhomprathip, W. (2013). The Impact of Political Instability on Tourism: Case of Thailand. Worldwide Hospitality and Tourism Themes, 5(1): 92-103.
Ivanov, S. (2017). Impacts of Political Instability on the Tourism Industry in Ukraine. Journal of Policy Research in Tourism, Leisure and Events, 9(1): 100-127.
Jovanovic, S. & Ilic, I. (2016). Infrastructure as Important Determinant of Tourism Development in the Countries of Southeast Europe. Ecoforum, 5(1): 288-294. 
Marin, D. (1992). Is the Export-led hyphothesis Valid for Industrialized Countries? Review of Economics and Statistics, 74(4): 678-688.
McKercher, B., Wan, S. M. & Tse, S. M. (2006). Are Short Duration Cultural Festivals Tourist Attractions? Journal of Sustainable Tourism, 14(1): 55-65.
Peric, J. & Radic, M. N. (2015). Tourism Productivity and Tourism FDI in Croatia. Mediterranean Journal of Social Sciences, 6(5): 425-433.
Peric, J. & Radic, M. N. (2017). FDI-LedTourism Growth Hypothesis: Empirical Evidence from Croatian Tourism. The Journal of CiTUR Centre of Tourism Research, Development and Innovation, 7(3): 168-175.
Selvanathan, S., Selvanathan, E. A. & Viswanathan, B. (2009). Causality Between Foreign Direct Investment and Tourism: Empirical Evidence from India. Finance Working Papers 22944.
Shafiullah, M., Okafor, L. E. & Khalid, U. (2019). Determinants of International Tourism Demand: Evidence from Australian States and Territories. Tourism Economics, 25(2): 274-296.
Shahbaz, M., Benkraiem, R., Miloudi, R. & Tiwari, A. K. (2018). Tourism-induced Financial Development in Malaysia: New Evidence from the Tourism Development Index. Tourism Economics, 24(1): 2-26.
Slivar, I., Bozic, S. & Batkovic, A. (2017). Innovation in Tourism: Perception of Tourism Providers from Croatia and Serbia. Review of Innovation and Competitiveness, 2(4): 37-56.
Tavares, J. M. & Leitão, N.C. (2017). The Determinants of International Tourism Demand for Brazil. Tourism Economics, 23(4): 834-845.
UNCTAD. (1998). World Investment Report. NewYork and Geneva, United Nation, 91-116.
Upadhayaya, P. K. Müller-Böker, U. & Sharma, S. R. (2011). Tourism Amidst Armed Conflict: Consequences, Copings, and Creativity for Peace-Building Through Tourism in Nepal. The Journal of Tourism and Peace Research, 1(2): 22-40.
Webb, M., Kuntuova, I. & Karabayeva, A. (2018). The Role of Education in Realising Youths’ Human Capital: Social Philosophical Analysis. Ensaio: Avaliação e Políticas Públicas em Educação. 26 (100): 968-985.
Webster, C. & Ivanov, S. (2014). Transforming Competitiveness into Economic Benefits: Does Tourism Stimulate Economic Growth in More Competitive Destinations? Tourism Management, 40: 137-140.
White, M. & Bruton, G. (2007). The Management of Technology and Innovation: A Strategic Approach. Mason, OH. Thompson South-Western.
Williams, S. (2003). Tourism Geography. London: Routledge, Williams, S. (2003). Tourism geography. This edition published in the Taylor & Francis e-Library, 2003.
World Travel and Tourism Council. (2019). Travel & Tourism Economic Impact 2019 world. https://www.wttc.org/-/media/files/reports/economic-impact-research/regions- 2019/world2019.pdf.
Yang, C. H., Lin, H.L. & Han, C. C. (2010). Analysis of International Tourist Arrivals in China: The Role of World Heritage Sites. Tourism Management, 31(6): 827-837.
  • Receive Date: 08 October 2019
  • Revise Date: 14 March 2020
  • Accept Date: 23 March 2020
  • First Publish Date: 30 October 2021