Sage Journals: Discover world-class research

Abstract

This article investigates the effect of corruption on growth of outbound business travels (OBT), after controlling other relevant determinants of demands for OBT. The model is empirically tested for 62 countries from 2007 to 2016. Using a panel fixed effects estimation method, the results show that higher levels of corruption lead to the growth of OBT. We also find that the impact of corruption on OBT is more apparent in emerging economies than developed countries.

Keywords

corruption grabbing-hand hypothesis international business travels

Get full access to this article

View all access options for this article.

References

Aidt

(2003) Economic analysis of corruption: a survey. The Economic Journal 113: 632–652.

Al-mulali

Gholipour

Lee

JYM

, et al. (2013) Estimating the tourism-led growth hypothesis: a case study of the middle east countries. Anatolia: An International Journal of Tourism and Hospitality Research 25: 290–298.

Baltagi

(2008) Econometric Analysis of Panel Data. West Sussex, UK: Wiley.

Barassi

Zhou

(2012) The effect of corruption on FDI: a parametric and non- parametric analysis. European Journal of Political Economy 28: 302–312.

Cooray

Dzhumashev

Schneider

(2017) How does corruption affect public debt? An empirical analysis. World Development 90: 115–127.

Cortés-Jiménez

Blake

(2011). Tourism demand modeling by propose of visit and nationality. Journal of Travel Research 50: 408–416.

Corruption Perceptions Index (CPI) (2010) Long methodological brief. Transparency International 3.

Craigwell

Moore

(2007) Foreign direct investment and tourism in SIDS: evidence from panel causality tests. Tourism Analysis 13: 427–432.

Das

Dirienzo

(2010) Tourism competitiveness and corruption: a cross-country analysis. Tourism Economics 16: 477–492.

10.

Dwyer

Kim

(2003) Destination competitiveness: determinants and indicators. Current Issues in Tourism 6: 369–414.

11.

Egger

Winner

(2005) Evidence on corruption as an incentive for foreign direct investment. European Journal of Political Economy 21: 932–952.

12.

Eilat

Einav

(2004) Determinants of international tourism: a three-dimensional panel data analysis. Applied Economics 36: 1315–1327.

13.

Enright

Newton

(2004) Tourism destination competitiveness: a quantitative approach. Tourism Management 25: 777–788.

14.

Euromonitor International (2019) Industries: travel, tourism flows, outbound departures. Avaiable at: http://www.portal.euromonitor.com/portal/magazine/homemain (accessed 16 August 2018).

15.

Farzanegan

Witthuhn

(2017) Corruption and political stability: does the youth bulge matter? European Journal of Political Economy 49: 47–70.

16.

Gholipour

Al-mulali

(2014) The interaction between tourism and FDI in real estate in OECD countries. Current Issues in Tourism 17: 105–113.

17.

Gholipour

Tajaddini

Al-mulali

(2014) Does personal freedom influence outbound tourism? Tourism Management 41: 19–25.

18.

Hausman

(1978) Specification tests in econometrics. Econometrica 46: 1251–1272.

19.

Khan

Toh

Chua

(2005) Tourism and trade: cointegration and granger causality tests. Journal of Travel Research 44: 171–176.

20.

Kulendran

Wilson

(2000) Modelling business travel. Tourism Economics 6: 47–59.

21.

Kulendran

Witt

(2003) Forecasting the demand for international business tourism. Journal of Travel Research 41: 265–271.

22.

Lau

TSC

Hazari

(2011) Corruption and tourism. In tourism, trade and welfare: theoretical and empirical issues. In: Hazari

Hoshmand

(eds) Corruption and Tourism, Vol. 10. New York, NY: Nova Science, pp. 159–170.

23.

Leff

(1964) Economic development through bureaucratic corruption. American Behavioral Scientist 8: 8–14.

24.

(2017) A panel data quantile regression analysis of the impact of corruption on tourism. Current Issues in Tourism 20: 603–616.

25.

Mauro

(1995) Corruption and growth. The Quarterly Journal of Economics 110: 681–712.

26.

Phillips

PCB

Hansen

(1990) Statistical inference in instrumental variable regression with I (1) processes. Review of Economic Studies 57: 99–125.

27.

Poprawe

(2015) A panel data analysis of the effect of corruption on tourism. Applied Economics 47: 2399–2412.

28.

Saha

Campbell

(2017) Does political and economic freedom matter for inbound tourism? A cross-national panel data estimation. Journal of Travel Research 56: 221–234.

29.

Saha

Yap

(2014) The moderation effects of political instability and terrorism on tourism development: a cross-country panel analysis. Journal of Travel Research 53: 509–521.

30.

Saha

Yap

(2015) Corruption and tourism: an empirical investigation in a non-linear framework. International Journal of Tourism Research 17: 272–281.

31.

Sanford

Dong

(2000) Investment in familiar territory: tourism and new foreign direct investment. Tourism Economics 6: 205–219.

32.

Santana-Gallego

Ledesma-Rodríguez

Pérez-Rodríguez

(2011) Tourism and trade in OECD countries. A dynamic heterogeneous panel data analysis. Empirical Economics 41: 533–554.

33.

Selvanathan

Viswanathan

(2012). Causality between foreign direct investment and tourism: empirical evidence from India. Tourism Analysis 17: 91–98.

34.

Shleifer

Vishny

(1993) Corruption. Quarterly Journal of Economics 108: 599–617.

35.

Smith

Toms

(1978) Factors Affecting Demand for International Travel to and from Australia. Occasional Paper 11. Canberra, Australia: Bureau of Transport.

36.

Sonmez

(1998) Tourism, terrorism, and political instability. Annals of Tourism Research 25: 416–456.

37.

Tajaddini

Gholipour

(2018) Control of corruption and luxury goods consumption. Kyklos 71: 613–641.

38.

Tang

(2018) The impacts of governance and institutions on inbound tourism demand: evidence from a dynamic panel data study. Asia Pacific Journal of Tourism Research 23: 1000–1007.

39.

Tang

Selvanathan

(2007) The relationship between foreign direct investment and tourism: empirical evidence from China. Tourism Economics 13: 25–39.

40.

Tsui

WHK

Balli

Tan

DTW

, et al. (2018) New Zealand business tourism: exploring the impact of economic policy uncertainties. Tourism Economics 24: 386–417.

41.

Turner

Reisinger

Witt

(1998) Tourism demand analysis using structural equation modelling. Tourism Economics 4: 301–323.

42.

Turner

Witt

(2001) Factors influencing demand for international tourism: Tourism demand analysis using structural equation modelling, revisited. Tourism Economics 7: 21–38.

43.

Wei

(2000) How taxing is corruption on international investors. The Review of Economics and Statistics 82: 1–11.

44.

World Bank (2019) World Bank open data. Available at: https://data.worldbank.org/ (accessed 20 September 2018).

45.

WTTC (2018) The economic impact of travel & tourism. World Travel & Tourism Council, March 2018. Available at: https://www.wttc.org/-/media/files/reports/economic-impact-research/regions-2018/world2018.pdf (accessed 15 September 2018).

46.

Yap

Saha

(2013) Do political instability, terrorism, and corruption have deterring effects on tourism development even in the presence of UNESCO Heritage? A cross-country panel estimate. Tourism Analysis 18: 587–599.

47.

Zhang

Singh

(2016) Does it matter? Examining the impact of China’s vacation policies on domestic tourism demand. Journal of Hospitality & Tourism Research 40: 527–556.

Supplementary Material

Please find the following supplemental material available below.

For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.

For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.

0.00 MB

0.28 MB

Corruption and outbound business travels

Abstract

Keywords

Get full access to this article

References

Supplementary Material