Determinants of tourism in African countries: the market value of the economy, financial factors and country risk
PhD thesis
Khondoker, M. 2021. Determinants of tourism in African countries: the market value of the economy, financial factors and country risk. PhD thesis Middlesex University Business School
Type | PhD thesis |
---|---|
Title | Determinants of tourism in African countries: the market value of the economy, financial factors and country risk |
Authors | Khondoker, M. |
Abstract | This thesis identifies new factors that significantly affect inbound tourism flows in African countries. In order to examine tourism flows, we employ a gravity model which is based on Newton’s law of gravitation and takes into account the push and pull factors that influence inbound tourism flows. The majority of the empirical studies on tourism analysis use the gross domestic product (GDP) or GDP per capita as a proxy for tourism income, but GDP is an imperfect measure of economic performance and is generally not effective when it comes to cross-country comparison. GDP is a flow variable gross of depreciation and provisions for loss that does not distinguish between production costs and value of output, while the market value of the economy from financial theory is a stock variable that incorporates the effects of production costs, output value, depreciation and expected losses. Hence, the market value of the economy from financial theory is employed as a proxy for tourism income. The global financial market index is then introduced into the model as a proxy for the effect of financial assets. We then investigate the effects of financial assets, financial development and financial risk (based on the Black–Scholes option pricing formula), on a country’s tourism inflow. Financial risk is largely ignored in the tourism literature where most of the research concentrates only on economic or political factors. Next, we examine the effect of composite country risk, which includes economic, financial and political risks as they all play a significant role in determining inbound tourism flows. Therefore, the overall country risk that comprises all three of these risk components may be a better measure rather than focusing only on political or economic risks. |
Department name | Business School |
Institution name | Middlesex University |
Publication dates | |
06 Jul 2022 | |
Publication process dates | |
Deposited | 06 Jul 2022 |
Accepted | 04 Feb 2021 |
Output status | Published |
Accepted author manuscript | |
Language | English |
https://repository.mdx.ac.uk/item/89x81
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