Impact of Globalization on Inbound Tourism in Mediterranean Countries: A Panel Regression Analysis

Abstract

Tourism sector has become one of the leading economic sectors and export items for the countries in the globalized world after consistent growth during the past six decades. Furthermore, tourism sector is also a significant component of economic growth and an important source of foreign exchange and employment due to its labor intensive structure. Therefore, many countries have designed and implemented various economic and non-economic measures to improve inbound tourism. In this context, this study investigated the impact of economic, social, cultural, and political globalization on inbound tourism in selected Mediterranean countries for the period of 1995-2017 through panel regression analysis considering the limited related literature. The regression analysis revealed that economic globalization, social globalization, cultural globalization, and political globalization positively affected inbound tourism. In this regard, the policies raising economic, social, cultural and political integration with global economy is expected to make a positive contribution to the development of inbound tourism.