Institutional Quality and Tourism: Panel Causality Analysis in the Case of Mediterranean Countries
DOI:
https://doi.org/10.6092/issn.2036-5195/11873Parole chiave:
Institutional Quality, International Tourism Receipts, Heterogeneous Panel, Causality Analysis, Mediterranean CountriesAbstract
Using panel data methods this study examines the relationship between institutional quality and tourism in the case of 12 Mediterranean countries. Six indexes of the Worldwide Governance Indicators database and a general index calculated as their average were taken into consideration as institutional quality indicators. International tourism receipts per tourist and international tourism receipts as a percentage of export were used as tourism performance indicators. In analysis, the cross-sectional dependence was examined by Pesaran (2004) CD test and in accordance with the findings of this test, first and second-generation panel unit root tests were applied. Taking into consideration of the stationarity of the variables and non-homogeneity of the parameters, the relationship between institutional quality and international tourism revenues was examined by Dumitrescu and Hurlin (2012) heterogeneous panel causality test. Findings of the causality analysis strongly supported the causality toward international tourism receipts per tourist from institutional quality variables. Causality to the international tourism receipts as a percentage of export was supported for some of the institutional quality variables.
Riferimenti bibliografici
Ağazade, S. (2016). Doğu Avrupa geçiş ekonomilerinde rekabet ve gelir düzeyi ilişkisi. Rekabet Dergisi, 66, 120-146.
Artan, S., Hayaloğlu, P., and Demirel, S.K. (2018). Akdeniz'e kıyısı olan ülkelerde kurumsal yapının turizme etkilerinin analizi. Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 5(3), 632-644.
Breusch, T. S., and Pagan, A. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. Review of Economic Studies, 47(1), 239-253.
Das, J., and Dirienzo, C. (2010). Tourism competitiveness and corruption: A cross-country analysis. Tourism Economics, 16(3), 477-492.
Demir, E., and Gozgor, G. (2017). What about relative corruption? The impact of the relative corruption on the inbound tourism to Turkey. International Journal of Tourism Research, 19(3), 358-366.
Demir, E., and Gozgor, G. (2019). Does freedom of the press enhance inbound tourism? Current Issues in Tourism, 22(20), 2550-2565.
Dickey, D.A., and Fuller, W.A. (1981). Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica, 49(4), 1057-1072.
Dumitrecu, E-I., and Hurlin, C. (2012). Testing for Granger non-causality in heterogeneous panels. Economic Modelling, 29(4), 1450-1460.
Ghalia, T., Fidrmuc, J., Samargandi, N., and Sohag, K. (2019). Institutional quality, political risk and tourism. Tourism Management Perspectives, 32, 100576.
Gozgor, G., Lau, C.K.M., Zeng, Y., and Lin, Z. (2019). The effectiveness of the legal system and inbound tourism. Annals of Tourism Research, 76: 24-35.
Granger, C.W.J. (1969). Investigating causal relations by econometric models and cross spectral method. Econometrica, 37, 424-438.
Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control, 12(213), 231-254.
Kim, Y.R., Saha, S., Vertinsky, I., and Park, C. (2018). The impact of national institutional quality on international tourism inflows: a cross-country evidence. Tourism Analysis, 23, 533-551.
Kubickova, M. (2019). The impact of government policies on destination competitiveness in developing economies. Current Issues in Tourism, 22(6), 619-642.
Lau, T.S.C., and Hazari, B. R. (2011). Corruption and tourism. In Tourism, Trade and Welfare: Theoretical and Empirical Issues, Hazari BR, Hauppauge RH (eds). Nova Publishers: New York, 159–170.
Levin, A., Lin, C.F., and Chu, C.S.J. (2002). Unit root tests in panel data: asymptotic and finite-sample properties. Journal of Econometrics, 108(1), 1-24.
Lv, Z., and Xu, T. (2017). A panel data quantile regression analysis of the impact of corruption on tourism. Current Issues in Tourism, 20(6), 603-616.
Im, K.S., Pesaran, M.H., and Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of Econometrics, 115(1), 53-74.
North, D.C. (2010). Kurumlar, kurumsal değişim ve ekonomik performans (G. Ç. Güven, Çev). İstanbul: Sabancı Üniversitesi Yayınları.
Pesaran, M.H. (2004). General diagnostic tests for cross section dependence in panels. University of Cambridge Faculty of Economics, Cambridge WP 0435 in Economics.
Pesaran, M.H. (2007). A sample panel unit root test in the presence of cross section dependence. Journal of Applied Econometrics, 22(2), 265-312.
Poprawe, M. (2015). A panel data analysis of the effect of corruption on tourism. Applied Economics, 47(23), 2399-2412.
Saha, S., Su, J-J., and Campbell, N. (2017). Does Political and Economic Freedom Matter for Inbound Tourism? A Cross-National Panel Data Estimation. Journal of Travel Research, 56(2), 221-234.
Saha, S., and Yap, G. (2015). Corruption and tourism: An empirical investigation in a non‐linear framework. International Journal of Tourism Research, 17(3), 272-281.
Swamy, P. (1970). Efficient inference in a random coefficient regression model. Econometrica, 38(2), 311-323.
Tang, C.F. (2018). The impacts of governance and institutions on inbound tourism demand: evidence from a dynamic panel data study, Asia Pacific Journal of Tourism Research, 23(10), 1000-1007.
Tatoğlu, F.Y. (2017). Panel zaman serileri analizi stata uygulamalı. İstanbul: Beta Yayıncılık.
Downloads
Pubblicato
Come citare
Fascicolo
Sezione
Licenza
Copyright (c) 2021 Seymur Ağazade
Questo articolo è soggetto a licenza Creative Commons Attribution 3.0 Unported License.
