Determining Interrelationship Between Factors Impacting Foreign Direct Investment in Tourism: An ISM-based Approach

2021 ◽  
pp. 2319510X2110485
Author(s):  
Anjali Gupta ◽  
Shivangi Gupta ◽  
Shekhar
Keyword(s):  
Direct Investment ◽  
Political Stability ◽  
Critical Component ◽  
Structural Modelling ◽  
Classification Analysis ◽  
Tourism Sector ◽  
Dependence Level ◽  
Tourist Demand ◽  
Tourism Economy ◽  
Power And Dependence

The burgeoning spectrum of tourist demand and changing tastes and preferences calls for developing the nation’s tourism profile. India, one of the fastest-growing economies and a potential attractor of tourists, is estimated to be the world’s third-largest tourism economy by 2028 (as per World Tourism and Travel Council [WTTC] estimates) and is expected to draw massive investment in this sector. Thus, the present study aims to analyse various factors impacting foreign flows in the tourism sector and develops a hierarchical structure among the identified factors through the interpretive structural modelling (ISM) technique. A MICMAC (Matrix of Cross-Impact Multiplications Applied to Classification) analysis is performed to categorise the identified factors based on the driving power and dependence level. The interrelationships among the variables were derived from the opinion gardened from 50 research and industry experts. The results showed that political stability plays a critical component in driving other variables in the system. Also, a stable system is likely to impact the economic environment of a nation positively, thus, creating a desirable profile for investors to invest in tourism businesses or the development of destinations.

scholarly journals Foreign Direct Investment and its Impact on Development of the Tourism Sector in Kurdistan Region – Iraq

2018 ◽  
Vol 4 (1) ◽  
pp. 80
Author(s):  
Assad H. Mohammed
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Geographical Location ◽  
Political Stability ◽  
Developed Countries ◽  
Kurdistan Region ◽  
Government Control ◽  
Important Place ◽  
Positive Effects ◽  
Tourism Sector

Countries seek to attract foreign investment because of the benefits that expect and the positive effects which these investments can have on their economies. However, these investments are looking for a safe of investment environment to work in their conditions of economic safety and legislation and regulations that would facilitate their work freely without restrictions or government control; as well as, the security and political stability, which is a prerequisite for directing these investments to a certain economy. This is clearly in the Kurdistan Region - Iraq. Thus, given the importance of the tourism sector in the economies of most countries and its clear role in economic and social development, many countries have given their attention to tourism investment, which is an important source of their economic resources. Developing countries have started developing plans and strategies based on field scientific studies and theory for the development of the tourism sector and development. This is so that this sector is the cornerstone of the pyramid interest of the power in most developed countries and territories including the Kurdistan Region of Iraq. Where, the territory occupies an important place through its geographical location and its potential tourism in different directions and diversity of tourism characteristics. Based on the above, the selection of foreign direct investment and its impact on the development of the tourism sector in the Kurdistan Region - Iraq has been the subject of research. This aimed in identifying the reality of direct investment in Kurdistan Region and its impact on the development of the tourism sector. Thus, identifying the most important challenges facing, it so that it can make a number of proposals which contribute to addressing these challenges.

تأثير الاستثمار الاجنبي المباشر في القيمة السوقية للشركة (دراسة تطبيقية في شركة بترو جانيا الصينية في عقود التراخيص النفطية للجولة الاولى والثانية في الحقول النفطية في العراق للمدة من 2017-2010)

2020 ◽  
Vol 2020 (66) ◽  
pp. 65-85
Author(s):  
هيثم عبد النبي موسى ◽  
أ .د حيدر نعمة غالي الفريجي
Keyword(s):  
Foreign Direct Investment ◽  
Stock Prices ◽  
Return On Investment ◽  
Direct Investment ◽  
Inverse Correlation ◽  
Market Value ◽  
Political Stability ◽  
Coefficient Of Determination ◽  
Independent Variable ◽  
The Impact

This study dealt with the effect of foreign direct investment on the market value of the company during the period of time (2010-2017). This issue was studied through a sample of oil fields in southern Iraq in which the company operates within the first and second licensing contracts rounds and according to the circumstances and variables of the investment environment as it is. Although this investment often achieves high returns, it is also characterized by a high degree of risk and for the purpose of evaluating the impact of foreign direct investment on the market value of the company's stock prices for the period (2010-2017). The statistical scale (T-TEST) was used to indicate the significance of the correlation hypotheses. Between the return on investment as the independent variable and the market value as the dependent variable, and the use of the coefficient of determination (R2) that measures the effect of the independent variable (foreign direct investment) on the dependent variable (market value) and the F-Test to demonstrate acceptance or rejection of the hypothesis of the return on investing in the market value of the oil company, and if the company achieves a high return in foreign direct investment, the market value of it will be affected positively. The study was based on a set of goals, including determining the attractiveness of Iraq to foreign investments, especially the oil sector, and the study reached a number of conclusions, the most prominent of which is the existence of a strong inverse correlation between the return on investment and the market value of the company. And the existence of a slight impact of the return on investment on the market value of the company, and the study reached a number of recommendations, the most important of which is activating the investment climate through political stability and the clarity and stability of laws and legislation regulating investment, which is one of the most important factors affecting the investment decision.

The determinants of foreign direct investment: what about the potential of the Arab Maghreb countries?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hamdi Khalfaoui ◽  
Abdelkader Derbali
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Political Stability ◽  
The United States ◽  
Investment Risk ◽  
Content Type ◽  
Foreign Companies ◽  
Main Determinants ◽  
General Method Of Moments

Purpose The purpose of this paper is to elucidate the main determinants of foreign direct investment (FDI) in the case of the Arab Maghreb countries. Design/methodology/approach We employ a dynamic panel analysis using the General Method of Moments for a sample composed of 105 countries over the period 1985–2018. Findings We show that FDI stability, market size, higher education enrolment, quality of institutions, distance, sharing of common border, and bilateral investment and integration agreements are the main determinants of FDI location. These determinants are neither general. The potential for attracting FDI from AMU countries is poorly exploited. FDI to the AMU is lower than estimated stock. The observed FDI to potential FDI ratio does not exceed 87%. France and Spain are the main investors in the AMU region thanks to historical and cultural links. The FDI from the United States, Canada, Germany, Belgium, and Japan are below what is expected. Originality/value The contribution of this paper is observed on the examining oh the determinants of the FDI in the Arab Maghreb countries. Our study demonstrate that the political stability can decrease investment risk in these countries. The administrations correspondingly require expanding their rules and strategies with union demonstrations which were at the beginning of the departure and closing of several foreign companies.

scholarly journals Political Stability and Security Status

2019 ◽  
Vol 3 (1) ◽  
pp. 11-13
Author(s):  
Ribaz Chato Biro
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Direct Investment ◽  
Political Stability ◽  
Kurdistan Region ◽  
Economic Sectors ◽  
Autonomous Region ◽  
Economic Progress ◽  
New Destination

Political stability and security have become important factors of sustainable economic progress for the developing countries, especially states with the experience of war and instability. Kurdistan Region of Iraq (KRI) as a semi-autonomous region tried to improve the level of political stability and security status, to gain more foreign direct investment (FDI) and economic growth. Consequently, KRI has become the safest region in Iraq and enjoyed political stability and safety. Therefore, during the last decade, KRI has occurred as a new destination of FDI in the Middle East and has received notable progress in most of the economic sectors. The aim of this study is to evaluate the role of political stability and security status on the FDI attractions and their consequences on economic development. However, it will investigate the factors that make the KRI safer than the rest of Iraq.

scholarly journals Determinant of FDI Inflows in OIC Countries

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Tania Megasari ◽  
Samsubar Saleh
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rates ◽  
Direct Investment ◽  
Trade Openness ◽  
Political Stability ◽  
Fixed Effect Model ◽  
Fdi Inflows ◽  
Macroeconomic Variables ◽  
Effect Model

This study aims to analyze the determinants of foreign direct investment (FDI) in the Organization of Islamic Cooperation (OIC) country members for the period 2005 to 2018 The determinant variables of FDI are corruption, political stability and macroeconomic variables such as inflation, exchange rates, economic growth, and trade openness. Analysis used in the study  is the fixed effect model (FEM) of the OIC data panel.The results showed that economic growth and trade openness had a significant influence on foreign direct investment (FDI), while the effects of corruption, political stability, inflation and the exchange rate have no significant effect on foreign direct investment (FDI).

scholarly journals Pengawasan Orang Asing terhadap Pemberlakuan Bebas Visa Kunjungan pada Kantor Imigrasi Kelas 1 Khusus Ngurah Rai

2021 ◽  
Vol 2 (1) ◽  
pp. 93-98
Author(s):  
Ni Made Putri Kartika Jati ◽  
I Wayan Arthanaya ◽  
I Nyoman Sutama
Keyword(s):  
Special Class ◽  
Class I ◽  
Foreign Workers ◽  
Bilateral Relations ◽  
Tourism Sector ◽  
Potential Abuse ◽  
The Republic ◽  
The Government ◽  
Tourism Economy ◽  
Legal Consequences

Free visit visa is a visa granted to foreigners upon arrival in Indonesia without paying a visa for a period of 30 days and cannot be extended. Visit visa free can be given at several Immigration Examination Sites (TPI) spread throughout Indonesia. The Ngurah Rai Special Class I Immigration Office personally supervises an Immigration Checkpoint, namely I Gusti Ngurah Rai International Airport. Regarding the implementation of a visit visa-free policy, the efforts made by the immigration ranks include: increasing the number of personnel, increasing supervision of landings and entry permits for foreigners, monitoring the use of residence permits by foreigners in various places, especially in the tourism sector and in various entertainment venues, there is cooperation between agencies in preventing prevention of visa-free use to minimize potential abuse of rules. The purpose of this study was to determine the application of visa-free policies at the Ngurah Rai Special Class I Immigration Office and to find out the legal consequences of the visa-free policy at the Ngurah Rai Special Class I Immigration Office. The research method uses empirical descriptive. The results of the study indicate that the application of a visa-free policy at the Ngurah Rai Special Class I Immigration Office is in accordance with the latest regulations, namely the Republic of Indonesia Presidential Regulation Number 21 of 2016 concerning Visit Visa Free. There are 169 countries around the world whose citizens can visit Indonesia without using a visa. It aims to improve bilateral relations, especially in terms of the tourism economy where the number of foreign tourists to Indonesia is targeted by the government of 20 million tourists by 2019. Legal Consequences Caused From Visa-Free Policies At the Ngurah Rai Special Class I Immigration Office, where according to one of the immigration functions is to select every intention of arriving foreigners, there are several cases of violations of law which can be easier to enter Indonesia such as foreign workers who work without complete permission in Indonesia.

Impact of Covid-19 on Tourism Sector in Nepal.

2021 ◽  
Author(s):  
Kamal Prasad Panthhe ◽  
C N Kokate
Keyword(s):  
Developing Countries ◽  
Foreign Exchange ◽  
Task Force ◽  
Policy Recommendations ◽  
Total Employment ◽  
Global Impact ◽  
Travel And Tourism ◽  
Tourism Sector ◽  
The Government ◽  
Tourism Economy

Tourism is an important source of foreign exchange earnings for the government and contributes to the livelihood of millions in developing countries. The purpose of this paper is to explore and illuminate the preliminary impacts of COVID-19 in tourism sector in Nepal and further the paper puts forward policy recommendations for government to avert the worst effects and facilitate recovery. In Nepal, the travel and tourism sector contributes to 8 percent of GDP, 6.7 percent of total employment, and it generates 6 percent of the total foreign exchange earnings. Nepal Tourism Board estimates that loss of 85.2 billion USD monthly from tourism sector only and three in five employees lost their jobs due to COVID-19 in Nepal. The “Visit Nepal 2020” campaign had cancelled which aimed to attract 2 million tourists in the country this year. Tourism sector has already suffered a huge loss, and it is going to take quite to restore. The government should form special task force to create economic response package that will support Nepalese, their job, their businesses from the global impact of COVID-19, and to ready the economy to recover.Keywords: Covid-19, Tourism, Economy, Nepal.

The Effects of COVID-19 on Turkey's Tourism Economy

2021 ◽  
pp. 226-246
Author(s):  
Mete Dibo
Keyword(s):  
Statistical Data ◽  
Theoretical Studies ◽  
The Arts ◽  
Tourism Sector ◽  
Employment Rates ◽  
National Economies ◽  
Tourism Economy

The aim of this study is to investigate the effects of the measures taken to combat the effects of the coronavirus pandemic in the tourism sector. Therefore, the study evaluates the employment rates in the tourism-related sectors and the course of the tourism sector revenues during the pandemic period in Turkey. According to the results of the study conducted based on the observation of statistical data, the arts, entertainment, and recreation sector experienced the highest employment loss with 38.9%. As a result of the restrictions on tourist mobility, the decrease in tourism revenues has reached 65% compared to the pre-pandemic period. While the research reveals the importance of the tourism sector for national economies, it also emphasizes the sensitivity of the sector against unexpected developments. The study is expected to contribute to the literature as it is an example and source for future applied and theoretical studies on the devastating effects of the COVID-19 pandemic.

scholarly journals Determinants of foreign direct investment in Lesotho: evidence from cointegration and error correction modeling

2013 ◽  
Vol 10 (1) ◽  
pp. 99-106
Author(s):  
Malefa Rose Malefane
Keyword(s):  
Foreign Direct Investment ◽  
South African ◽  
Direct Investment ◽  
Political Stability ◽  
Promotion Strategy ◽  
Investment Promotion ◽  
Regulatory Frameworks ◽  
Critical Issues ◽  
Red Tape ◽  
Error Correction Modeling

Over the past decade, Lesotho has recorded a substantial increase in levels of foreign direct investment (FDI) inflow, part of it prompted by trade privileges. Building on the extant literature, this study provides an empirical analysis of determinants of FDI in Lesotho. The study looks at how macroeconomic stability, regulatory frameworks, political stability and market size affect FDI.  The evidence from this study shows that some of the foreign enterprises in Lesotho are there to serve a bigger South African market. Also, the country has benefited from a more export-oriented investment promotion strategy. Critical issues however remain that must be addressed if the country is to attract more FDI and retain existing investors .These issues pertain to bureaucratic red-tape, corruption and political instability.

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