Revisiting FDI-led growth hypothesis: the role of sector characteristics

Does foreign direct investment (FDI) lead to higher growth? What type of FDI really works? In this paper, we disaggregate FDIs based on their technological characteristics and investigate which kind of FDI leads to output growth. The results for the sample of OECD countries during the period 1985–2012 indicate that FDI inflows to Information and Communication Technologies (ICTs) using and producing manufacturing and service sectors (ICT-based), non-ICT using and producing manufacturing and service sectors (non-ICT-based) and other sectors (non-ICT-other) play no role in contributing to economic growth. However, we provide evidence that absorptive capacities of host countries work through ICT-based FDI inflows. Only if the host countries have sufficient level of human capital, financial resources and technological infrastructure, ICT-based FDI will foster economic growth. The results are robust to controlling missing values, studying the subsample of emerging market economies and consideration of endogeneity.     

Heterogeneity in the determinants of length of stay across middle age and senior age groups in thermal tourism

ABSTRACT

Water has been seen as a healing source of life for centuries. Even the placebo effect of thermal therapies increases consumers’ well-being. Especially with easy traveling options demand for thermal therapies are on the rise. Users of thermal therapies are mostly composed of seniors. Even though age groups in the senior market have heterogeneous needs, managers assume them to be homogenous. Measuring thermal tourism demand by the length of stay, this study analyzed the determinants affecting the length of stay of older thermal tourists. The length of stay is predicted to have been affected by age, purchasing power, physical distance, and seasonal preferences. Even though all of the above have an effect on the length of stay, we find that age is the main determinant deciding the duration. These results may serve as a starting point for policymakers and tourism managers to tailor strategies to increase income streams associated with length of stay.     

ICT labor,software usage,and productivity: firm-level evidence from Turkey

Journal of Productivity Analysis - This paper examines the impact of information and communication technology (ICT) on firm-level productivity in Turkey using a novel longitudinal data set. We...     

Motivations and destination selection of mature international thalassotherapy tourists

Because of population ageing worldwide, awareness of the motives of mature tourists is more important than ever. Previous studies show that, among others, income level, distance and education influence the decisions of tourists when choosing a travel destination. However, studies on health tourism suggest that these general conclusions may mask differences across different age groups. For instance, older people place greater reliance on their savings than their current income for tourism expenditure. We take this line of research and examine destination selection of mature international thalassotherapy tourists in conjunction with their motivations (as a subdivision of thermal tourism) across two age groups: 54 years and under and 55 years and over. We conduct a panel data analysis on 78 countries from which tourists in Turkey received thalassotherapy from 2012 to 2014. We find that the 55 years and over age group is less sensitive to income levels but more sensitive to distance and education than the other age group.