Rwanda’s tourism plans depend on stability

2020 ◽  
Keyword(s):  
Economic Growth ◽  
Active Role ◽  
Content Type ◽  
Technology Sector ◽  
International Airport ◽  
Tourism Sector

Subject Rwanda's tourism sector. Significance Qatar Airways Chairman Akbar al-Baker on February 5 confirmed rumours that the Gulf carrier is in talks to acquire a 49% stake in RwandAir. This follows a deal in December relating to the construction of a new 1.3-billion-dollar international airport outside Kigali, in which Qatar Airways will take a 60% stake. The deals will provide a major boost to President Paul Kagame’s long-standing efforts to use tourism as a major driver of economic growth. However, challenges remain that could threaten this vision. Impacts The Qatar Airways deals may open the door to greater Qatari investment in Rwanda generally. As part of its wider push to boost the technology sector, Rwanda will also focus on expanding the digitalisation of tourism. Kagame’s active role in major continental political initiatives will boost opportunities for the hosting of major events in Kigali.

scholarly journals Modelling productivity shocks and economic growth using the Bayesian dynamic stochastic general equilibrium approach

2018 ◽  
Vol 30 (11) ◽  
pp. 3229-3249 ◽  
Author(s):  
Anyu Liu ◽  
Haiyan Song ◽  
Adam Blake
Keyword(s):  
Economic Growth ◽  
General Equilibrium ◽  
Bayesian Method ◽  
Dynamic Stochastic General Equilibrium ◽  
Content Type ◽  
Tourism Sector ◽  
Productivity Shock ◽  
Equilibrium Approach ◽  
Dynamic Stochastic ◽  
Simulation Results

Purpose Most existing studies on the impact of tourism on economic growth adopt an econometric approach that is insufficient to confirm that tourism actually leads to economic growth. Moreover, it cannot explain the causalities of different variables. Taking Mauritius as an example, this study aims to use the dynamic stochastic general equilibrium approach to investigate the contribution of tourism to economic growth when there is a productivity shock in the tourism sector. Design/methodology/approach A two-sector, small, open economy is modelled under the dynamic stochastic general equilibrium framework. The model is estimated using the Bayesian method based on real tourism and macroeconomic data from Mauritius for the period from 1999 to 2014. The impulse response functions are used to simulate the contribution of tourism to economic growth when there is a productivity shock in the tourism sector. Findings The simulation results show that the Mauritian gross domestic product (GDP) would increase by 0.09 per cent if the productivity of tourism is improved by 1 per cent, indicating that tourism could lead to economic growth. Considering the average annual growth rate of the Mauritian GDP, the contribution of tourism to its economic growth is significant. Furthermore, the effects of tourism on economic growth are moderated by price elasticities in international tourism demand. Originality/value This is the first study that estimates the dynamic stochastic general equilibrium model using the Bayesian method in tourism economic field. By correcting the prior information with real tourism and macroeconomic data, the estimation and simulation results are more robust compared with the calibration method, which has been used frequently in tourism studies.

Finland’s new premier may struggle to survive

2019 ◽  
Keyword(s):  
Economic Growth ◽  
Prime Minister ◽  
Islamic State ◽  
Postal Service ◽  
Social Democrat ◽  
Content Type ◽  
Security Incident ◽  
Technology Sector ◽  
Skilled Immigration ◽  
The Government

Subject Finland's new prime minister. Significance On December 8, Sanna Marin replaced Anti Rinne as Social Democrat (SDP) leader and Finland’s prime minister. She takes over with the SDP fourth in the polls, while implementing the government’s ambitious proposals will likely be compromised by slowing economic growth. Impacts The successful strikes this year at Posti, Finland’s main postal service, could encourage further strikes in 2020. Any security incident relating to Islamic State returnees would weaken the government and strengthen the nationalist Finns Party. Encouraging skilled immigration, particularly for the technology sector, will be a key priority for this government.

Is tourism pro-poor in India? An empirical investigation using ARDL approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manu Sharma ◽  
Geetilaxmi Mohapatra ◽  
Arun Kumar Giri
Keyword(s):  
Economic Growth ◽  
Poverty Reduction ◽  
Tourism Development ◽  
Annual Data ◽  
Critical Question ◽  
Causality Test ◽  
Content Type ◽  
Long Run ◽  
Tourism Sector ◽  
Short Run

PurposeThe purpose of this paper is to examine the relationship between tourism sector development and poverty reduction in India using annual data from 1970 to 2018. The paper attempts to answer the critical question: Is tourism pro-poor in India?Design/methodology/approachStationarity properties of the series are checked by using the ADF unit root test. The paper uses the Auto Regressive Distributed Lag (ARDL) bound testing approach to cointegration to examine the existence of long-run relationships; error-correction mechanism for the short-run dynamics, and Granger non-causality test to test the direction of causality.FindingsThe cointegration test confirms a long-run relationship between tourism development and poverty reduction for India. The ARDL test results suggest that tourism development and economic growth reduces poverty in both the long run and the short run. Furthermore, inflation had a negative and significant short-run impact on the poverty reduction variable. The causality test confirms that there is a positive and unidirectional causality running from tourism development to poverty reduction confirming that tourism development is pro-poor in India.Research limitations/implicationsThis study implies that poverty in India can be reduced by tourism sector growth and price stability. For a fast-growing economy with respect to economic growth and tourism sector growth, this may have far-reaching implications toward inclusive growth in India.Originality/valueThis paper is the first of its kind to empirically examine the causal relationship between tourism sector development and poverty reduction in India using modern econometric techniques.

scholarly journals Strengthening Rural and Regional Economic Competitiveness Triggering Purworejo Regency Economic Growth through Tourism-Based Kutoarjo Transit Node Development

2019 ◽  
Vol 4 (1) ◽  
pp. 19
Author(s):  
Ibtidah Triyani ◽  
Khalid Adam ◽  
Diana Kristina
Keyword(s):  
Economic Growth ◽  
Added Value ◽  
Railway Transport ◽  
Excellent Opportunity ◽  
International Airport ◽  
Central Java ◽  
Tourism Sector ◽  
Administrative Area ◽  
Surrounding Areas ◽  
Node Development

The railway transport node in Kutoarjo, serving the southern route of Java, is an excellent opportunity for Kutoarjo's economic growth. Kutoarjo, located in the administrative area of Purworejo Regency in RTRW of Central Java Province belongs to Purwomanggung regional system covering Purworejo Regency, Wonosobo Regency, Magelang Regency, Magelang City, and Temanggung Regency. An international airport is also being built in Kulonprogo Regency, Special Region of Jogjakarta Province, which will be integrated with the existing stations in Purworejo Regency, explicitly located in Kutoarjo sub-district, Kutoarjo Station. The construction of NYIA (New Yogyakarta International Airport) in Kulon Progo is an excellent opportunity for the rise and trigger for Kutoarjo. However, the current condition of the existing Kutoharjo station is not optimal and does not significantly give added value to the economy either in Kutoarjo or Purworejo. Kutoharjo Station is only a temporary transit point, and there is no other object which can make visitors want to stop longer in Kutoharjo. This study aims to formulate a management development of Kutoarjo as a transit city that can contribute to mobilizing the economy in Purworejo Regency and its surrounding areas. The analysis is conducted by considering movement patterns, development of transit areas, supporting sectors and policies. Based on the analysis results, it can be seen that the development of transit area using seamless tourism concept requires ± 1.4 ha of land around Kutoarjo station, which is still included in 200 meters (walkable) radius. Result of study reveals that the development of node transit is supported by a potential tourism sector. The implication of this transit area development is the absorption of labor force in 2038 as many as 12,213 people. Besides, there is an economic increase of PAD (LGR) of 55.7% which eventually leads the LGR (PAD) reach IDR. 2.328.129.852.138 in 2039.

FAKTOR FAKTOR YANG MEMPENGARUHI PRODUK DOMESTIK BRUTO NEGARA-NEGARA ASEAN PERIODE 2005-2014

2017 ◽  
Vol 22 (1) ◽  
pp. 23-29
Author(s):  
Leorista Milliardo
Keyword(s):  
Economic Growth ◽  
Analytical Tool ◽  
Panel Regression ◽  
Estimation Model ◽  
Process Data ◽  
Factors Affecting ◽  
Goods And Services ◽  
Asean Member ◽  
Tourism Sector ◽  
Asean Countries

This study was conducted with the aim of identifying the factors affecting economic growth in ASEAN member countries during the period of 2005 - 2014, with the countries sampled in this study were six countries namely Indonesia, Singapore, Malaysia, Thailand, Philippines, Vietnam, Cambodia and Laos. The method of analysis used is the method of Data Panel Regression and Fixed Efect estimation model by using analytical tool to help process data is Eviews 7 program. While data used is panel data from eight ASEAN countries covering 10 year periods. The result of analysis shows that the acceptance of International Tourism Sector and Foreign Direct Investment has positive and significantinfluenceto the economic growth in eight ASEAN countries while the Labor Force is inconclusive. The study also found that Export of Goods and Services had a negative and significanteffect on economic growth.

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.

scholarly journals Examining the connection among national tourism expenditure and economic growth in Algeria

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Salah Eddine Sari Hassoun ◽  
Khayereddine Salim Adda ◽  
Asma Hadjira Sebbane
Keyword(s):  
Economic Growth ◽  
Structural Break ◽  
Unit Root Test ◽  
Vector Autoregressive ◽  
Natural Logarithm ◽  
Tourism Sector ◽  
Strategic Role ◽  
Short Run ◽  
Per Capita ◽  
Tourism Expenditure

AbstractTourism is one of the most important sectors for several researchers and decision makers, due to its influence on the world economic growth in the twenty-first century, making it as a source of competition between countries to a global industry for its effective strategic role in the development of countries. In this paper, we used two variables natural logarithm of per capita gross domestic product (GDP) and natural logarithm of per capita international and national tourism expenditure (ITE) to study the relationship between the tourism sector and economic growth in Algeria over the period of 1995–2017. We established with the unit root test with and without breakpoint that the variables are stationary in the first difference and there is a structural break in (ITE) and (GDP). Thus, with the presence of a breakpoint, we employed the methodology of Gregory–Hansen to avoid such issue, but we found that there was no evidence of cointegration with breakpoint, so then we used the vector autoregressive model (VAR). The model showed that the tourism sector has a positive and insignificant coefficient on the economic growth, while the economic growth factor has a positive and significant on the tourism sector. In the short run, there was a one-way causality from GDP to ITE at the level of 1%, confirming the economic-driven tourism growth hypothesis. Also, we found with Breitung and Candelon causality that there was same causality at the level of 10%.

Government spending shocks and economic growth: additional evidence from cyclical behavior of fiscal policy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olumide Olusegun Olaoye ◽  
Ukafor Ukafor Okorie ◽  
Oluwatosin Odunayo Eluwole ◽  
Mahmood Butt Fawwad
Keyword(s):  
Economic Growth ◽  
Business Cycle ◽  
Government Spending ◽  
Generalized Method Of Moments ◽  
The State ◽  
Fiscal Policies ◽  
Asymmetric Effect ◽  
Content Type ◽  
Spending Shocks ◽  
The Business Cycle

PurposeThis study examines the asymmetric effect of government spending on economic growth in Nigeria over the period 1980–2017. Specifically, this study investigates whether the response of economic growth to government spending shocks differs according to the nature of shocks on them. In addition, the authors examine whether the stabilizing effects of fiscal policies are dependent on the state of the business cycle.Design/methodology/approachThe study adopts the linear fiscal reaction function in addition to the nonlinear regression model of Hatemi-J (2011, 2012), Granger and Yoon (2002), which allows us to separate negative shocks from positive shocks to government spending. Similarly, the authors adopt the generalized method of moments (GMM) techniques of Hansen (1982) to account for simultaneity and endogeneity problems inherent in dynamic model.FindingsThe authors’ findings reveal that there is evidence of asymmetry in the government spending–economic growth nexus in Nigeria over the period of study. Specifically, the authors find that the response of economic growth to government spending shocks differs according to the nature of shocks on them. More specifically, the study established that the stabilizing effects of fiscal policies are dependent on the state of the business cycle.Originality/valueUnlike the traditional method of modeling asymmetry, which adopts the simple inclusion of a squared government spending term or by the inclusion of a cubic government spending term, the model adopted in this study allows us to model shocks and show how the responses of economic growth to government expenditure differ according to the nature of shocks on them.

China’s shadow banking sector: beneficial or harmful to economic growth?

2015 ◽  
Vol 7 (4) ◽  
pp. 421-445 ◽  
Author(s):  
James R. Barth ◽  
Tong Li ◽  
Wen Shi ◽  
Pei Xu
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Commercial Banking ◽  
Global Perspective ◽  
Shadow Banking ◽  
Content Type ◽  
Wide Range ◽  
Recent Developments ◽  
Major Factors ◽  
Made In

Purpose – The purpose of this paper is to examine recent developments pertaining to China’s shadow banking sector. Shadow banking has the potential not only to be a beneficial contributor to continued economic growth, but also to contribute to systematic instability if not properly monitored and regulated. An assessment is made in this paper as to whether shadow banking is beneficial or harmful to China’s economic growth. Design/methodology/approach – The authors start with providing an overview of shadow banking from a global perspective, with information on its recent growth and importance in selected countries. The authors then focus directly on China’s shadow banking sector, with information on the various entities and activities that comprise the sector. Specifically, the authors examine the interconnections between shadow banking and regular banking in China and the growth in shadow banking to overall economic growth, the growth in the money supply and the growth in commercial bank assets. Findings – Despite the wide range in the estimates, the trend in the size of shadow banking in China has been upward over the examined period. There are significant interconnections between the shadow banking sector and the commercial banking sector. Low deposit rate and high reserve requirement ratios have been the major factors driving its growth. Shadow banking has been a contributor, along with money growth, to economic growth. Practical implications – The authors argue that shadow banking may prove useful by diversifying China’s financial sector and providing greater investments and savings opportunities to consumers and businesses throughout the country, if the risks of shadow banking are adequately monitored and controlled. Originality/value – To the authors’ knowledge, this paper is among the few to systematically evaluate the influence of shadow banking on China’s economic growth.

scholarly journals The drivers of economic growth in China and India: globalization or financial development?

2017 ◽  
Vol 16 (1) ◽  
pp. 54-84 ◽  
Author(s):  
Magda Kandil ◽  
Muhammad Shahbaz ◽  
Mantu Kumar Mahalik ◽  
Duc Khuong Nguyen
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Emerging Market ◽  
Annual Data ◽  
Test Results ◽  
Causality Test ◽  
Content Type ◽  
China And India ◽  
Integration Test ◽  
The Impact

Purpose Using annual data from 1970 to 2013 for China and India, this paper aims to examine the impact of globalization and financial development on economic growth by endogenizing capital and inflation and drawing comparisons between the two fastest growing emerging market economies. Design/methodology/approach In the long run, co-integration test results indicate that financial development increases economic growth in China and India. Findings The results also reveal that globalization accelerates economic growth in India but, surprisingly, impairs economic growth in China, as it increases competition for exports. The results furthermore disclose that acceleration in capitalization and inflation, as a proxy for aggregate demand, are positively linked to economic growth in China and India. Originality/value Causality test results indicate that both financial development and economic growth are interdependent. In contrast, causality runs from higher economic growth to increased globalization in India, while the results do not support long-term causality between globalization and economic growth in China.

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