The Role of Foreign Tourists in Economic Growth: Evidence from Indonesia

Foreign tourism is indicated as one of the important instruments to encourage economic growth in several countries, including Indonesia. However, some studies only focus on the influence of tourist arrivals. Thus, the main objective of this study is to take a deeper look at the contribution of forei...

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Autores principales:	Muhammad Azizurrohman, Romi Bhakti Hartarto, Yih-Ming Lin, Faiza Husnayeni Nahar
Formato:	article
Lenguaje:	EN
Publicado:	Universitas Muhammadiyah Yogyakarta 2021
Materias:	tourist arrival economic growth visa-free exchange rate Economic theory. Demography HB1-3840
Acceso en línea:	https://doaj.org/article/59d6df9f29804cd58ae0376fb3b61964
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spelling	oai:doaj.org-article:59d6df9f29804cd58ae0376fb3b619642021-11-05T03:54:11ZThe Role of Foreign Tourists in Economic Growth: Evidence from Indonesia1411-99002541-550610.18196/jesp.v22i2.11591https://doaj.org/article/59d6df9f29804cd58ae0376fb3b619642021-10-01T00:00:00Zhttps://journal.umy.ac.id/index.php/esp/article/view/11591https://doaj.org/toc/1411-9900https://doaj.org/toc/2541-5506Foreign tourism is indicated as one of the important instruments to encourage economic growth in several countries, including Indonesia. However, some studies only focus on the influence of tourist arrivals. Thus, the main objective of this study is to take a deeper look at the contribution of foreign tourism indicators to economic growth in Indonesia. Using panel data analysis from 33 countries between 2006 and 2016, this study applies three models: Pooled Least Square (PLS), Fixed Effect Model (FEM), and Random Effect Model (FEM). Based on the fixed-effect model, this study reveals that foreign tourist arrivals have a significant and positive effect on economic growth. However, other tourism indicators such as length of stay and expenditure of foreign tourists appear to have no contribution to economic growth. From these findings, it can be implied that the Indonesian government should not only attract more tourists to come but also design strategies to encourage tourists to spend more money and stay longer. This study also finds that depreciation of Indonesian currency and visa-free policies have a significant contribution to higher economic growth.Muhammad AzizurrohmanRomi Bhakti HartartoYih-Ming LinFaiza Husnayeni NaharUniversitas Muhammadiyah Yogyakartaarticletourist arrivaleconomic growthvisa-freeexchange rateEconomic theory. DemographyHB1-3840ENJurnal Ekonomi & Studi Pembangunan, Vol 22, Iss 2, Pp 313-322 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	tourist arrival economic growth visa-free exchange rate Economic theory. Demography HB1-3840
spellingShingle	tourist arrival economic growth visa-free exchange rate Economic theory. Demography HB1-3840 Muhammad Azizurrohman Romi Bhakti Hartarto Yih-Ming Lin Faiza Husnayeni Nahar The Role of Foreign Tourists in Economic Growth: Evidence from Indonesia
description	Foreign tourism is indicated as one of the important instruments to encourage economic growth in several countries, including Indonesia. However, some studies only focus on the influence of tourist arrivals. Thus, the main objective of this study is to take a deeper look at the contribution of foreign tourism indicators to economic growth in Indonesia. Using panel data analysis from 33 countries between 2006 and 2016, this study applies three models: Pooled Least Square (PLS), Fixed Effect Model (FEM), and Random Effect Model (FEM). Based on the fixed-effect model, this study reveals that foreign tourist arrivals have a significant and positive effect on economic growth. However, other tourism indicators such as length of stay and expenditure of foreign tourists appear to have no contribution to economic growth. From these findings, it can be implied that the Indonesian government should not only attract more tourists to come but also design strategies to encourage tourists to spend more money and stay longer. This study also finds that depreciation of Indonesian currency and visa-free policies have a significant contribution to higher economic growth.
format	article
author	Muhammad Azizurrohman Romi Bhakti Hartarto Yih-Ming Lin Faiza Husnayeni Nahar
author_facet	Muhammad Azizurrohman Romi Bhakti Hartarto Yih-Ming Lin Faiza Husnayeni Nahar
author_sort	Muhammad Azizurrohman
title	The Role of Foreign Tourists in Economic Growth: Evidence from Indonesia
title_short	The Role of Foreign Tourists in Economic Growth: Evidence from Indonesia
title_full	The Role of Foreign Tourists in Economic Growth: Evidence from Indonesia
title_fullStr	The Role of Foreign Tourists in Economic Growth: Evidence from Indonesia
title_full_unstemmed	The Role of Foreign Tourists in Economic Growth: Evidence from Indonesia
title_sort	role of foreign tourists in economic growth: evidence from indonesia
publisher	Universitas Muhammadiyah Yogyakarta
publishDate	2021
url	https://doaj.org/article/59d6df9f29804cd58ae0376fb3b61964
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The Role of Foreign Tourists in Economic Growth: Evidence from Indonesia

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