ISSN: 1648 - 4460

International Journal of Scholarly Papers


Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2021
  • © Brno University of Technology, 2002-2021
  • © University of Latvia, 2002-2021
Foreign Direct Investment, Tourism, Economic Growth and Trade: Panel Vector Auto Regression (VAR) Model
Jelena Perovic, Milica Raicevic, Milica Delibasic

ABSTRACT. Tourism plays a crucial role in the development and growth of all countries, especially developing ones and it is one of the world's main business and a progressively significant source of investment. The main aim of this research paper is to investigate a long-run relationship and the direction of causality among the open trade, foreign direct investment (FDI), GDP growth, international tourism and number of arrivals using Panel vector autoregression (VAR) models, applied on annual data from 1995 to 2016 for a sample of 19 Mediterranean countries .

KEYWORDS:  Foreign direct investment (FDI), international tourism, economic trade and growth, gross domestic product per capita, VAR model.

JEL classification:  F21, P33.

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Scholarly papers Transformations in Business & Economics
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