The impacts of governance and institutions on inbound tourism demand: evidence from a dynamic panel data study |
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Authors: | Chor Foon Tang |
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Affiliation: | Centre for Policy Research and International Studies, Universiti Sains Malaysia, Penang, Malaysia |
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Abstract: | This study explores the impact of governance and institutions on inbound tourism demand in Malaysia using a dynamic panel data approach for 45 tourism source countries over the period 2005–2015. The results show that institutions play a very important role in explaining the behaviour of inbound tourism demand. To obtain a better picture, we investigate the response of international tourists to disaggregated institutional quality. We find that international tourists are more concerned about political stability, governmental effectiveness, regulations, laws, and corruption than voice and accountability. Therefore, policymakers should focus on ways to improve institutional quality to significantly increase international tourist arrivals. |
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Keywords: | Dynamic panel GMM governance institutions Malaysia tourism demand |
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