Original scientific paper
https://doi.org/10.1080/1331677X.2017.1340173
Tourism foreign direct investment led tourism gross value added: a co-integration and causality analysis of Croatian tourism
Heri Bezić
; Faculty of Economics, University of Rijeka, Rijeka, Croatia
Maja Nikšić Radić
orcid.org/0000-0002-8871-6833
; Faculty of Tourism and Hospitality Management, University of Rijeka, Rijeka, Croatia
Abstract
The purpose of this study was to investigate the causal relationship
between foreign direct investment in tourism and tourism gross
value added in Croatia. The study employed econometric techniques,
such as the unit root test, Johansen co-integration, and the Granger
causality test, in a vector error correction model (V.E.C. model), and the
Toda–Yamamoto causality test in a vector autoregressive model (V.A.R.
model), using quarterly time-series data from 2000(1) to 2012(4). The
results confirm the existence of a stable co-integrated relationship
between variables in the long term. A short-term relationship was
also proved between foreign direct investment in tourism and gross
value added, using the Toda–Yamamoto causality test. By including
control variables, the two-way causality between the subject variables
was proven using the Granger causality test.
Keywords
Foreign direct investment in tourism; gross value added; V.E.C. model; .A.R. model; Granger causality test; Toda– Yamamoto causality test
Hrčak ID:
193193
URI
Publication date:
1.12.2017.
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