Tourism could be Japan's new economic growth engine

2015 ◽  
Keyword(s):  
Economic Growth ◽  
Middle Class ◽  
Growth Strategy ◽  
International Tourism ◽  
Structural Factors ◽  
Content Type ◽  
Travel Costs ◽  
Inbound Tourism ◽  
Mount Fuji

Subject Japan's tourism boom. Significance Depreciation of the yen has slashed travel costs for foreign visitors to Japan. However, there are longer-term structural factors driving Japan's boom in inbound tourism. Promoting the sector is integral to the Abe administration's growth strategy -- and it is the only part of the original 'third arrow' that is really on course to hit its target. Impacts The already-prosperous 'golden route' (Tokyo, Kyoto, Osaka, Nagoya and Mount Fuji) will benefit most from international tourism. However, as the industry develops and the number of repeat visitors grows, the range of tourist spots will expand. Shoppers from Asia's growing middle class are a key market, which will continue to grow.

Impact of foreign direct investment and international tourism on long-run economic growth of Estonia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amin Sokhanvar ◽  
Glenn P. Jenkins
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Growth Strategy ◽  
Policy Implications ◽  
International Tourism ◽  
Potential Threat ◽  
Fdi Inflows ◽  
Economic Growth Rate ◽  
Content Type ◽  
Long Run

PurposeInternational tourism and FDI inflows have generated detectable beneficial impacts on the economy of Estonia in the last decades. However, recently, poor international market conditions mostly caused by the trade war and COVID-19 pandemic have been a potential threat to these two factors. Besides, the poor performance of investments in recent years is behind the stagnation of productivity in Estonia. This study examines the dynamics of the effects of these factors on the rate of economic growth in Estonia and provides policy implications in line with sustained recovery.Design/methodology/approachA nonlinear ARDL technique is employed in this study to investigate the long-run effects of FDI and the degree of tourism specialization on economic growth rate.FindingsOur findings indicate that the economic growth rate of Estonia in the long run has been positively affected by both the rate of FDI inflows and international tourism.Originality/valueThis is the first study that employs a non-linear approach to investigate the dynamics of long-run effects of FDI and tourism specialization on the rate of economic growth in Estonia and provides policy implications in line with optimal growth strategy considering the economic structure, the current level of productivity and available potentials in this economy.

Urban-rural linkages could foster growth in Uganda

2017 ◽  
Keyword(s):  
Economic Growth ◽  
Middle Class ◽  
Informal Economy ◽  
Urban Population ◽  
Capital City ◽  
Infrastructure Investment ◽  
Employment Opportunities ◽  
Economic Implications ◽  
Content Type ◽  
Urban Rural

Significance Planned infrastructure expansion comes amid shifts in Ugandan demographics with economic implications. The urban population is expected to grow to over 20 million people by 2040, while only 15% of new employment opportunities generated in the capital city are in the tradeable sector. Many urban jobs remain part of the informal economy, complicating efforts to raise domestic revenue. Impacts Economic growth will increase consumption through rising middle-class demand. Current urban demand is met through imported, processed commodities, leading to the growth of less-productive, 'consumption' cities. Productivity will depend on infrastructure investment; however, failure to raise domestic revenue could raise the risk of debt distress.

scholarly journals The relationship between tourism and economic growth among BRICS countries: a panel cointegration analysis

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Haroon Rasool ◽  
Shafat Maqbool ◽  
Md. Tarique
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Panel Cointegration ◽  
Cointegration Analysis ◽  
International Tourism ◽  
Causality Analysis ◽  
Panel Ardl ◽  
Brics Countries ◽  
Inbound Tourism ◽  
The Relationship

AbstractTourism has become the world’s third-largest export industry after fuels and chemicals, and ahead of food and automotive products. From last few years, there has been a great surge in international tourism, culminates to 7% share of World’s total exports in 2016. To this end, the study attempts to examine the relationship between inbound tourism, financial development and economic growth by using the panel data over the period 1995–2015 for five BRICS (Brazil, Russia, India, China and South Africa) countries. The results of panel ARDL cointegration test indicate that tourism, financial development and economic growth are cointegrated in the long run. Further, the Granger causality analysis demonstrates that the causality between inbound tourism and economic growth is bi-directional, thus validates the ‘feedback-hypothesis’ in BRICS countries. The study suggests that BRICS countries should promote favorable tourism policies to push up the economic growth and in turn economic growth will positively contribute to international tourism.

Government digital information discovery and exploration: the case of unraveling tourism-led-growth paradox in China

2017 ◽  
Vol 45 (4) ◽  
pp. 212-219
Author(s):  
Maxwell K. Hsu ◽  
Junzhou Zhang ◽  
Yamin Ahmad
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
International Tourism ◽  
Chinese Government ◽  
Gdp Growth ◽  
Digital Information ◽  
Model Framework ◽  
Content Type ◽  
Domestic Tourism ◽  
The Relationship

Purpose This study aims to examine the relationship between tourism development and economic growth while considering exports simultaneously. Governments in many countries have been developing and deploying strategies to attract tourism receipts as a means for economic growth. However, assessing the potential impact of tourism on economic growth among large economies is still in its infancy. Design/methodology/approach Using a vector error correction model framework, this study examines the relationship among exports, gross domestic product (GDP) and tourism receipts (including international tourism receipts and domestic tourism receipts in two separate models) with macro data that covers two recent decades (1994-2013) in China. Findings The empirical findings confirm the existence of a long-term equilibrium relationship in each of these two tri-variate models. The empirical findings reveal that (1) both tourism-led-growth and export-led-growth hypotheses are supported, (2) the growth rate of tourism receipts exhibit a higher relevance with GDP growth than export growth and (3) the growth rate of international tourism shows a higher relevance with GDP growth than domestic tourism growth. Originality/value Using macroeconomic data collected by the Chinese government, the current study employs an advanced econometric methodology to explore the potential benefits of tourism on economic growth in China.

Does foreign direct investment affect economic growth? The case of Turkey

2014 ◽  
Vol 41 (6) ◽  
pp. 434-449 ◽  
Author(s):  
Birgül Cambazoglu ◽  
Hacer Simay Karaalp
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
International Trade ◽  
Direct Investment ◽  
Growth Strategy ◽  
Volume Index ◽  
Outward Fdi ◽  
Content Type ◽  
The Real ◽  
The Impact

Purpose – The purpose of this paper is to analyze the impact of inward foreign direct investment (FDI) and international trade on economic growth in Turkey for the post-liberalization period (1980-2010). Design/methodology/approach – The paper employs the vector auto-regression model with four variables: real GDP growth, real inward FDI, the real import volume index and the real export volume index. Findings – Empirical results suggest a relationship between economic growth, inward FDI and exports. Practical implications – The results derived in this paper shed light on the relationship between FDI and international trade on economic growth for Turkey, which has been applying an export-led growth strategy since 1980, and has been implementing many regulations to attract foreign capital. It is evident that although Turkey's efforts and the importance of this issue, new policies and stabilization regulations must be established for the Turkish economy. Originality/value – This study contributes to the literature in at least two aspects. First, a comparative analysis of Turkey's inward and outward FDI with respect to different country groups was analyzed. Second, apart from other studies, the effect of inward FDI and international trade on Turkey's economic growth was tested utilizing an econometric method from 1980 to 2010, which is a relatively long time period for Turkey.

China's middle class will grow, even as economy slows

2015 ◽  
Keyword(s):  
Economic Growth ◽  
Middle Class ◽  
Household Consumption ◽  
Gdp Growth ◽  
Purchasing Power ◽  
High Quality ◽  
Content Type ◽  
Slow Progress

Subject China's middle class. Significance The purchasing power of China's middle class is not expanding as quickly as anticipated due to slow progress in 'rebalancing' economic growth from investment to household consumption, and, more recently, the slowdown in GDP growth overall. However, despite the slowing economy, the middle class still enjoys relatively secure employment, and its numbers are still growing. Impacts Growth of the middle class will shift geographically, away from the coast towards smaller, inland cities. Middle-class consumers will pay a premium for high-quality, discretionary goods from established brands. Domestically, leisure, entertainment, electronics and cars will be among the greatest beneficiaries of middle-class spending. Internationally, education, insurance and tourism will be among the greatest beneficiaries.

An empirical investigation of N-11 countries as successors of BRICS using panel data modeling

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Priya Gupta ◽  
Parul Bhatia
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Panel Data ◽  
Emerging Countries ◽  
Growth Strategy ◽  
Growth Strategies ◽  
Economic Activities ◽  
Content Type ◽  
The World ◽  
Determinants Of Economic Growth

PurposeFor more than four decades, persistent economic activities and a focused growth strategy resulted in significant infrastructural and other favorable economic and institutional changes in the world's developing nations. High-quality growth is not just a function of sound economic policies but also implementing a broad range of social policies. The BRICS (Brazil, Russia, India, China and South Africa) nations have proven their testimony on both these factors. Following their path are some other emerging economies like N-11 (or Next Eleven propounded by Goldman Sachs (2005) Report), which this present study tries to examine as successors of BRICS.Design/methodology/approachAlong with panel data regression modelling, the study has applied econometric procedures robust to heterogeneities across various nations and have been able to produce more reliable results that can be generalized for other similar groups of countries. 11 independent variables (both economic and institutional) have been used to meet the study's objective for a period of 34 years (1985–2018).FindingsThe findings of the study reveal that the governments of both the group of countries must work toward their macro-economic stability factors (external debt stocks), technological capabilities (mobile and fixed broadband subscriptions), human capital (health expenditure) and political conditions (mainly the rule of law) to enhance their sustainable economic growth.Research limitations/implicationsThis study enhances knowledge of the determinants of economic growth in emerging countries. Firms from BRICS and N-11 may better understand the factors influencing their internationalization process (both economic and institutional). The study is significant not just for the researchers but also for the policymakers of the BRICS and N-11 to understand in which areas their country is leading or lagging. The study is useful even for the policymakers of other emerging countries of the world who might take lessons from these nations (especially BRICS) and follow their success path. This study helps the governments of other groups of emerging countries such as PIN (Pakistan, Indonesia and Nigeria); MINT (Mexico, Indonesia, Nigeria and Turkey); CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa), etc. which can follow the path of BRICS economies in growth and formulate policies to increase their economic growth accordingly. At the enterprise level, it helps MNCs understand BRICS and N-11 markets and formulating entry and growth strategies in these most emerging countries of the world.Originality/valueThe present study is unique. It tries to investigate the projections of the Goldman Sachs report after 15 years of its release. It tries to determine the factors responsible for the economic development in the N-11 countries with advanced econometric techniques. Majorly, the focus is to comparatively analyze the growth trajectory for BRICS and N-11 nations and suggest whether N-11 has the potential to become successors of BRICS. A concentrated effort to examine the most significant drivers (both economic and institutional), which may lead to economic progression, has been made in this study.

Variations in economic growth across states in Malaysia: an exploratory analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yusniliyana Yusof ◽  
Kaliappa Kalirajan
Keyword(s):  
Economic Growth ◽  
Socioeconomic Development ◽  
Secondary Data ◽  
State Level ◽  
Bootstrap Sampling ◽  
Content Type ◽  
Estimation Techniques ◽  
Development Index ◽  
Three Stage Least Squares ◽  
Development Gap

PurposeThe study contributes to the aim of regional development policy in reducing regional disparities, by examining the spatial balance in socioeconomic development across the states of Malaysia based on composite development index (CDI). Besides, the study has attempted to understand the issues in the development gaps across Malaysian states by evaluating the factors that explain the variation in economic growthDesign/methodology/approachThis study uses three-stage least squares (3SLS) and bootstrap sampling and estimation techniques to examine the factors that explain the variations in the growth of development across the states in Malaysia. The analysis involves 13 states in Malaysia (Johor, Melaka, Negeri Sembilan, Pulau Pinang, Perak, Perlis, Selangor, Kedah, Kelantan, Pahang, Terengganu, Sabah and Sarawak) from 2005 to 2015.FindingsThe pattern in the spatial socioeconomic imbalance demonstrates a decreasing trend. However, the development index reveals that the performance of less developed states remained behind that of the developed states. The significant factors in explaining the variation in growth across the Malaysian states are relating to agriculture, manufacturing, human capital, population growth, Chinese ethnicity, institutional factors and natural resources.Research limitations/implicationsThe authors focused on Malaysian states over the period between 2005 and 2015. The authors encountered some limitations in obtaining relevant data such as international factors and technological change that might also explain the variation in economic growth as the data on these variables are not reported at the state level. Moreover, the data on GSDP by sector was only available from the year 2005. Second, the study is based on secondary data. Future studies might examine the factors that contribute to the development gap across Malaysian states through interviews or questionnaires and compare the findings with the existing results. Despite its limitations, this study contributes to the existing literature that emphasizes on spatial balance of socioeconomic in a developing country, focusing on Malaysian states.Practical implicationsThese findings provide guidance for policymakers by understanding key potential areas to reduce the disparity in economic growth across Malaysian states by understanding their impact on the growth.Originality/valueThis study employs different method of 3SLS and bootstrap sampling and estimation techniques in examining the factors that explain the variations in the growth of development across the states in Malaysia.

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