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Tourism-Led Growth Hypothesis and Foreign Direct Investment in ASEAN

Tourism-Led Growth Hypothesis and Foreign Direct Investment in ASEAN

Praopan Pratoomchat
Copyright: © 2017 |Pages: 26
ISBN13: 9781522520788|ISBN10: 1522520783|EISBN13: 9781522520795
DOI: 10.4018/978-1-5225-2078-8.ch014
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MLA

Pratoomchat, Praopan. "Tourism-Led Growth Hypothesis and Foreign Direct Investment in ASEAN." Tourism and Opportunities for Economic Development in Asia, edited by Patricia Ordóńez de Pablos and Zeyar Myo Aung, IGI Global, 2017, pp. 224-249. https://doi.org/10.4018/978-1-5225-2078-8.ch014

APA

Pratoomchat, P. (2017). Tourism-Led Growth Hypothesis and Foreign Direct Investment in ASEAN. In P. Ordóńez de Pablos & Z. Aung (Eds.), Tourism and Opportunities for Economic Development in Asia (pp. 224-249). IGI Global. https://doi.org/10.4018/978-1-5225-2078-8.ch014

Chicago

Pratoomchat, Praopan. "Tourism-Led Growth Hypothesis and Foreign Direct Investment in ASEAN." In Tourism and Opportunities for Economic Development in Asia, edited by Patricia Ordóńez de Pablos and Zeyar Myo Aung, 224-249. Hershey, PA: IGI Global, 2017. https://doi.org/10.4018/978-1-5225-2078-8.ch014

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Abstract

This study tests the relationships of visitor spending, foreign direct investment in the tourism sector, and the gross domestic product (GDP) per capita among members of the Association of Southeast Asian Nations (ASEAN) during the period of 1988 to 2011 to prove the tourism-led growth hypothesis. The results of panel regression show that tourism-led growth hypothesis is valid for the ASEAN countries. Factors determining the GDP per capita in these countries are visitor spending, foreign investment and government consumption in tourism sector, human capital and trade openness. The results from this study suggest that the governments of the ASEAN countries are able to have effective growth policies by encouraging foreign direct investment in the tourism sector and improving their human capital. Therefore, ASEAN Economic Community (AEC) which will strengthen and facilitate investment cooperation and human capital developments in the tourism sector among ASEAN countries will have a significant benefit to economic growth in the region.

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