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Essays on Tourism and its Determinants
Thaana Ghalia
Department of Economics and Finance
College of Business, Arts and Social Sciences
Brunel University London, UK
A thesis submitted for the degree of
Doctor of Philosophy
February 2016
Abstract
This thesis is based on four essays dealing with tourism development and its
determinants. Chapter Two explores the different definitions of ‘tourism’ and
‘tourist’, as well as the factors that influence tourism arrivals. We discuss traditional
and more recent theories that underlie the study of the tourism industry. The third
chapter examines the effect of tourism upon economic growth, investigating the
effects of tourism specialization within tourism-exporting countries and non-
tourism-exporting countries annually over the period 1995–2007, applying panel-
data methods in cross-sectional growth regressions. This study finds that tourism
does not affect economic growth in either underdeveloped or developed countries.
Moreover, tourism might cause Dutch Disease in tourism-exporting countries owing
to their over-reliance on the exporting of non-traded goods.
Chapter Four seeks to identify how institutional quality and aspects of
infrastructure (internet access measured by size of country or per 100 people)
influence tourist arrivals in a whole sample of 131 countries and in sub-samples
comprising developed and developing countries (as defined by IMF criteria) using
static and dynamic panel data. The findings indicate that internet access enhances the
tourism industry, and most interestingly, that good governance is one of the most
influential factors for improving and developing tourism.
Chapter Five diagnoses the determinants of tourism flows using panel-data
sets including 134 originating countries and 31 destination countries (selected
depending on data availability) focusing on ICRG data for the period 2005–2009.
The methodology makes use of basic and augmented gravity equations, together
with the Hausman-Taylor and Poisson estimation techniques, whilst comparing the
performance of the three gravity-equation methods. The results suggest that lower
levels of political risk contribute to an increase in tourism flows. Furthermore,
common language (positively), common currency (negatively) and political factors
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(particularly institutional quality) are the most prominent determinants in promoting
(or deterring) tourism. Chapter Six gives concluding remarks.
Acknowledgements
I am grateful to many individuals for their care and support given during my
the tumultuous task of completing doctoral studies.
First and foremost, I would like to express my profound gratitude to Dr Jan
Fidrmuc, my supervisor, for his enthusiastic encouragement, insightful advice, and
invaluable suggestions. This work would not have been possible without him and his
tremendous willingness to indulge thought provoking discussions. He has indeed
been an inspiration and a driving force during this time. I am also thankful to Prof
João Santos Silva, University of Surrey, and Dr. Maria Santana Gallego, University
of Balearic Islands, for their kind help and constructive comments that helped me to
conduct the fifth essay in my thesis. My deepest appreciation goes to the World
Tourism Organization (WTO) for providing the tourists data for the study of gravity
model in this thesis. The Brunel University Student Centre has also played a
tremendous role during these past few years. As an overseas student at Brunel, I am
deeply indebted to the centre's staff espacilly Mr Jose Sanchez for all the help and
care they have shown me and many other students.
I also would like to thank all the members of staff and my peers, Mohammad
Tajik, Saeideh Aliakbari,Mohamad Helmi, Nahla Samargand,Francis Atsu in the
Department of Economics and Finance at Brunel for their support and help during
this journey. My grateful appreciation extends to Damascus University for the
financial support they provided me during my doctoral studies.
It is without a doubt that my family has always been my inspiration and my
rock when I mostly needed support. My heartfelt gratitude goes to the most precious
people in my life, my parents for their eternal love and moral support whenever I
need it during my doctoral studies. The spirit of my brother Mohamed, who
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sacrificed his life defending our country, has always shadowed and looked over me
as I completed my journey. To him I say, thank you, I love you, and I hope you are
proud of me today. When times were tough, and the PhD cold, my sisters, brothers,
sisters and brothers in law were my destination for a quick call at the crazy hours of
the night, or to talk to as I had a meal. Thank you for always showing me love,
support and encouragement. I also want to thank my dear friends Maher Alliwa,
Kinana Jammoul, Osama Alraheb, Rami Younes ,Hayan Omran and Naima Al-
Naami for their help and support all the time. Last but not least, I would like to
express my deepest gratitude to my relative Hind Ali who was there for me all the
time. Indeed, no words can express my gratefulness and gratitude to her.
Thank you all from the bottom of my heart
Thaana Ghalia
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