Environmental Quality and Long Run Tourism Development a Cyclical Perspective for Small Island Tourist Economies

Tourism is perceived as one of the world’s fastest growing service sectors and a major source of economic development for many, if not all, developing countries. Zanzibar as a developing country and also is a small island which have small economy, its national income depend much on tourism contribution, Therefore this paper aim to examine the impact of tourisms development to the economic development of Zanzibar, using the data based on annual time series from the period 1989–2019 and also employing Vector Error Correlation Model (VECM) to arrive at conclusions from the data in the study area. The study results found a long-run stable relationship among tourism development and economic development of Zanzibar, there is a positive and significant impact that exists between GDP and international tourism arrivals, inflation and government expenditure respectively while only inflation results show positive but insignificant impact. In order to increase the economic development in Zanzibar through the tourism sector, there is a need for the government and other stakeholders of tourism to put much consideration on this sector so as to improve overall development of Zanzibar economy.

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An Empirical Analysis of the Impact of Foreign Direct Investment on Tourism Development: The Mauritian Case

Tourism Analysis ◽

10.3727/108354219x15652651367514 ◽

2019 ◽

Vol 24 (4) ◽

pp. 517-529 ◽

Cited By ~ 1

Author(s):

Boopen Seetanah ◽

Sheereen Fauzel

Keyword(s):

Foreign Direct Investment ◽

Direct Investment ◽

Tourism Development ◽

Small Island ◽

Vector Error Correction ◽

Time Series Econometrics ◽

Vector Error ◽

Long Run ◽

Dynamic Time ◽

The Impact

This article investigates the link between foreign direct investment (FDI) and tourism development for the case of the small island economy of Mauritius for the period 1980–2015. The research employs a dynamic time series econometrics framework, namely a vector error correction model (VECM), to account for potential dynamic and endogenous relationship in the FDI–tourism nexus. Analysis of the finding shows that FDI has a positive and significant effect, albeit relatively lower compared to the other classical factors of tourism development, in the long run. Interestingly, a bicausal effect is observed in the long run while an indirect link between FDI and tourism development via the economic growth channel is found.

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Modeling the Dynamic Linkage between Tourism Development, Technological Innovation, Urbanization and Environmental Quality: Provincial Data Analysis of China

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph18168456 ◽

2021 ◽

Vol 18 (16) ◽

pp. 8456

Author(s):

Zhang Chenghu ◽

Muhammad Arif ◽

Khurram Shehzad ◽

Mahmood Ahmad ◽

Judit Oláh

Keyword(s):

Technological Innovation ◽

Environmental Degradation ◽

Environmental Quality ◽

Carbon Emissions ◽

Tourism Development ◽

The Other ◽

Economic Methodology ◽

Causality Test ◽

Panel Causality ◽

Long Run

This study investigates the linkage between tourism development, technological innovation, urbanization and environmental degradation across 30 provinces of China. Based on data from 2001 to 2018, the study used an advanced economic methodology for the long-run estimate, the Augmented Mean Group (AMG) estimator, which accounts for heterogeneity in slope parameters and dependencies across countries. The empirical results show that tourism development degrades environmental quality, while technological innovation mitigates carbon emissions. Further, findings show that urbanization increases carbon emissions, while an inverted U-shaped relationship exists between economic growth and environmental degradation, implying the existence of EKC in China. Further, the Dumitrescu–Hurlin panel causality test shows that any policy aimed at tourism development or technological innovation would substantially contribute to environmental degradation, but not the other way round.

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FDI and tourism futures: a dynamic investigation for a panel of small island economies

Journal of Tourism Futures ◽

10.1108/jtf-05-2018-0026 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Cited By ~ 1

Author(s):

Sheereen Fauzel

Keyword(s):

Tourism Development ◽

Capital Inflows ◽

Small Island ◽

Causality Analysis ◽

Reverse Causality ◽

Content Type ◽

Long Run ◽

The Future ◽

Foreign Capital Inflows ◽

The Impact

Purpose Based on a panel vector error correction model (PVECM), this study aims to investigate the impact of foreign direct investment (FDI) on tourism development in a selected group of 17 small island economies during 1995-2018. In the long run, a positive and direct relationship was found between foreign investment and tourists’ arrival. Moreover, economic performance and tourists’ income were also found to be key determinants of tourism development. It is further observed that there is bidirectional causality between the two variables. Hence, one can argue that FDI is a key element for tourism development. So, if the countries can attract more FDI and grow economically, these elements will contribute positively to the sector in the future. Design/methodology/approach This work uses rigorous dynamic time series analysis, namely, a dynamic PVECM, which takes into account dynamism and endogeneity issues in tourism modelling. Furthermore, the PVECM is also appropriately suited for integrating short- and long-run analysis. Findings The results confirm that FDI has been an important ingredient in the tourism development of the island economies in the long run. Interestingly, a bidirectional causality between FDI and tourism development is validated. Moreover, growth will as well be important. So, if the country can attract more FDI and grow economically, these elements will attract the tourists of the future. Originality/value Relatively few studies have rigorously studied the relationships between FDI and tourism development, particularly with respect to developing countries and small island states which rely heavily on tourism as well as FDI. As such existing research has neglected dynamic and reverse causality analysis in their respective FDI-tourism modelling. This study thus attempts to address the above and supplement the literature by investigating the direct and indirect relationship between FDI and tourism development for the case of small island economies over the period 1995-2018. Moreover, the implication of foreign capital inflows on tourism futures will as well be developed.

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Heterogeneous effect of oil production on environmental degradation: panel evidence from OPEC member countries

International Journal of Energy Sector Management ◽

10.1108/ijesm-04-2021-0009 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Ismail Aliyu Danmaraya ◽

Aminu Hassan Jakada ◽

Suraya Mahmood ◽

Bello Alhaji Ibrahim ◽

Ahmad Umar Ali

Keyword(s):

Renewable Energy ◽

Environmental Degradation ◽

Environmental Quality ◽

Oil Production ◽

The Body ◽

Energy Sources ◽

Asymmetric Effect ◽

Content Type ◽

Long Run ◽

Opec Member

Purpose The purpose of this paper is to look at the asymmetric effect of oil production on environmental degradation in OPEC member countries from 1970–2019. Design/methodology/approach The authors build a nonlinear panel ARDL–PMG model using the Shin et al. (2014) nonlinear autoregressive distributed lag (ARDL) approach in panel form to assess both the short- and long-run impact of positive and negative oil production movements on CO2 emissions. Findings The result demonstrates that the variables are cointegrated. According to the linear long run coefficients, oil production, FDI inflows and economic growth both have a positive and significant relationship with CO2 emissions, implying that they deteriorate environmental quality in OPEC countries, while renewable energy has a negative relationship with CO2, implying that increasing renewable energy improves environmental quality. The asymmetric findings prove that positive and negative shocks of oil production exert a positive effect on carbon emissions in short run and long run. Research limitations/implications To begin with, the empirical assessments do not include all OPEC member nations; researchers are advised to resolve this constraint by looking at the economies of other OPEC members. Albeit the lack of data for other energy sources may serve as another constraint of this research, future research is expected to broaden the current framework via other energy sources such as nuclear, electricity, biomass, solar as well as wind. Originality/value The research adds to the body of knowledge as many of the prevailing studies in the literature failed to look at the asymmetric effect of oil production on the quality of environment. This is another gap in the literature that the current study is set out to fill. This study adds oil production as an explanatory variable and helps to extend the existing literature for OPEC countries, which could propose a solution to deal with ensuing environmental issues.

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TRADE AND GROWTH IN A NON‐RECOGNIZED SMALL ISLAND STATE: EVIDENCE FROM THE TURKISH REPUBLIC OF NORTHERN CYPRUS

Journal of Business Economics and Management ◽

10.3846/jbem.202010.06 ◽

2010 ◽

Vol 11 (1) ◽

pp. 112-130

Author(s):

Salih Katircioglu

Keyword(s):

Economic Growth ◽

International Trade ◽

Small Island ◽

Long Run ◽

Equilibrium Relationship ◽

Island State ◽

Northern Cyprus ◽

Small Island State ◽

Growth Hypothesis ◽

Long Run Equilibrium

This paper empirically investigates long‐run equilibrium relationship and causality between international trade and economic growth in North Cyprus, which has a non‐recognized state and suffers from the Cyprus problem for more than 40 years. Results reveal that long‐run equilibrium relationship exists between international trade variables (exports and imports of goods and services) and economic growth in this small island state. The present study also validates the existence of export‐led growth hypothesis in Northern Cyprus while it rejects the validity of import‐led growth hypothesis. Finally, this study has shown that Turkish Cypriots should improve not only services exports but also merchandise exports in to contribute to its economy further. Santrauka Straipsnyje, remiantis empiriniais duomenimis, tyrinejama ilgalaike pusiausvyra bei priežastinis ryšys tarp tarptautines prekybos ir ekonominio augimo Šiaures Kipre, kuris yra nepripažintas ir kenčia del šios politines problemos daugiau negu 40 metu. Empirinio tyrimo rezultatai leidžia teigti, kad tarp tarptautines prekybos rodikliu (prekiu ir paslaugu eksporto bei importo) bei ekonominio augimo šioje mažoje saloje vyrauja ilgalaike pusiausvyra. Tyrimas patvirtina hipoteze apie eksporto kaip ekonominio augimo veiksnio svarba, bet paneigia importo itaka nagrinejamos mažos šalies pletrai. Autorius ragina skatinti ne tik paslaugu, bet ir produkcijos eksporta norint pasiekti spartesni ekonomikos augimo masta Šiaures Kipre.

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Island Tourism-Based Sustainable Development at a Crossroads: Facing the Challenges of the COVID-19 Pandemic

Sustainability ◽

10.3390/su131810081 ◽

2021 ◽

Vol 13 (18) ◽

pp. 10081

Author(s):

Eugenio Figueroa B. ◽

Elena S. Rotarou

Keyword(s):

Negative Impact ◽

Tourism Development ◽

Climate Change Impacts ◽

Small Island ◽

Economic Downturn ◽

Mass Tourism ◽

Alternative Tourism ◽

Tourism Sector ◽

Global Tourism ◽

Uncertain Future

Tourism is often seen as the ‘golden ticket’ for the development of many islands. The current COVID-19 pandemic, however, has ground global tourism to a halt. In particular, islands that depend heavily on tourist inflows—including mass-tourism islands, and small island developing states (SIDS)—have seen their revenues diminish significantly, and poverty rates increasing. Some alternative-tourism islands have fared better, as they have focused on providing personalized, nature-based experiences to mostly domestic tourists. This article focuses on the experiences of mass-tourism islands, SIDS, and alternative-tourism islands during the COVID-19 pandemic, and offers possible post-pandemic scenarios, as well as recommendations for sustainable island tourism development. Although the pandemic has largely had a negative impact on the tourism sector, this is a unique opportunity for many islands to review the paradigm of tourism development. In this newly emerging world, and under a still very uncertain future scenario, the quadriptych of sustainability is more important than ever. Responsible governance and management of islands’ natural resources and their tourism activities, addressing climate change impacts, the diversification of islands’ economies, and the promotion of innovative and personalized tourist experiences are all necessary steps towards increasing islands’ resilience in case of future economic downturn or health- and environment-related crises.

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Agricultural land usage and tourism impact on renewable energy consumption among Coastline Mediterranean Countries

Energy & Environment ◽

10.1177/0958305x18779577 ◽

2018 ◽

Vol 29 (8) ◽

pp. 1438-1454 ◽

Cited By ~ 60

Author(s):

Andrew Adewale Alola ◽

Uju Violet Alola

Keyword(s):

Renewable Energy ◽

Energy Consumption ◽

Carbon Emission ◽

Agricultural Land ◽

Tourism Development ◽

Renewable Energy Consumption ◽

Land Usage ◽

Mediterranean Countries ◽

Long Run ◽

Short Run

Abstact This empirical study aims to investigate the dynamic response of renewable energy consumption to long-run disequilibrium and short-run impact of tourism development and agricultural land usage for the period of 1995 to 2014 in 16 Coastline Mediterranean Countries. For this reason, a dynamic Autoregressive Distributed Lag approach is employed in a multivariate and two-model framework such that carbon emission and gross domestic product are being controlled for in the models. Significantly, there is evidence of a joint impact of tourism development and agricultural land usage on renewable energy consumption. With a speed of adjustment of 21.6% from short-run disequilibrium to long run, their respective panel elasticities are 0.33 and negative 1.60 in the long run. Significant evidence shows that nine of the Coastline Mediterranean Countries have tourism development as a short-run factor while Slovenia and Cyprus exhibit a short-run common factor. Also, Granger causality evidences from carbon emission, gross domestic product and tourism development to renewable energy are all with feedbacks. However, Granger causality from agricultural land usage to renewable energy is without feedback. In the region, effective policy implementations through the collaborative effort of stakeholders will ensure a sustainable renewable energy development amidst agricultural and tourism activities.

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Income inequality and CO2 emissions: Empirical evidence from Turkey

Energy & Environment ◽

10.1177/0958305x18793109 ◽

2018 ◽

Vol 30 (3) ◽

pp. 444-461 ◽

Cited By ~ 9

Author(s):

Caner Demir ◽

Raif Cergibozan ◽

Adem Gök

Keyword(s):

Income Inequality ◽

Environmental Degradation ◽

Environmental Quality ◽

Environmental Kuznets Curve ◽

Kuznets Curve ◽

Aggregate Consumption ◽

Distributed Lag ◽

Long Run ◽

Short Run ◽

The Impact

The aim of the study is to investigate the impact of income inequality on environmental quality in Turkey within the Environmental Kuznets Curve framework. In order to observe the short-run and long-run effects of income inequality on environmental quality, an autoregressive distributed lag bounds test on CO2 emission has been employed for the period 1963–2011 of Turkey. The results of the analysis reveal that there is a negative association between CO2 emission level and income inequality, which implies that increasing income inequality reduces environmental degradation in Turkey. Hence, a greater inequality in the society leads to less aggregate consumption in the economy due to lower propensity to emit in the richer households resulting in better environmental quality. The findings confirm an argument in the existing literature, which suggests that for developing countries, until a certain level of development, environmental degradation increases as income inequality in the society decreases. The results also confirm the Environmental Kuznets Curve hypothesis.

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The effect of information and communication technology on economic output

International Journal of Development Issues ◽

10.1108/ijdi-09-2018-0137 ◽

2019 ◽

Vol 18 (2) ◽

pp. 229-242

Author(s):

Keshmeer Makun ◽

Swastika Devi

Keyword(s):

Information And Communication Technology ◽

Communication Technology ◽

Output Growth ◽

Empirical Literature ◽

Small Island ◽

Content Type ◽

Economic Output ◽

Long Run ◽

Fiji Islands ◽

Information And Communication

Purpose Information and communication technology (ICT) appears to play an indispensable task in influencing and directing the growth process of several developing countries. The spread of ICT in the South Pacific region including Fiji has facilitated faster and smother business in different sectors of the economy such as banking, education, transport and tourism. The purpose of this paper is to contribute to empirical literature and explore the effect of ICT on economic output, both in the short run and long run in the Fiji Islands. Design/methodology/approach The economic analysis was conducted using data from 1990 to 2016, improved framework of Solow (1956) and the autoregressive distributed-lag bounds approach to cointegration. Findings from the study and economic standpoint, the ICT is indeed important. The analysis shows an indication of long-run cointegration relationship among the variables for the two indicators of ICT. From the analysis, it is also observed that the two ICT indicators have a statistically significant and positive effect on output with coefficient ranging from 0.04 to 0.06. Research limitations/implications These results extend the ICT literature by providing support for it in case of a small developing island economy. The study highlights that while the two proxies of ICT are important for long term output growth, besides broad money and capital stock, the principal technology contributor is a mobile cellular subscription in Fiji Islands. Practical implications The policymakers need to work diligently to not only enhance ICT related infrastructure but also focus on better services and communication in different sectors of the economy. The efficient use of present technologies such as 3-G and 4-G is crucial and must be connected and made available to other smaller islands of Fiji. Originality/value The recent study has focused on the contribution of ICT on small island developing country, relative to large developing or developed countries. Furthermore, the author examined the contribution of two indicators of ICT using Solow (1956) augmented framework.

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