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Investigating the nexus between GDP, oil prices, FDI, and tourism for emerging economy: empirical evidence from the novel fourier ARDL and hidden cointegration

This study is conducted to investigate the nexus between GDP, FDI, oil prices, and tourism using yearly data from 1995 to 2017. The integration order is investigated by applying the ADF, PP and Zivot and Andrews unit root tests that identify the integration order in the presence of one endogenous br...

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Main Authors:	Faisal, Faisal, Rahman, Sami Ur, Chander, Rajnesh, Ali, Adnan, Ramakrishnan, Suresh, Ozatac, Nesrin, Ullah, Mr. Noor, Tursoy, Turgut
Format:	Article
Published:	Elsevier Ltd 2021
Subjects:	HB Economic Theory HD Industries. Land use. Labor
Online Access:	http://eprints.utm.my/id/eprint/94619/ http://dx.doi.org/10.1016/j.resourpol.2021.102368
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id	my.utm.94619
record_format	eprints
spelling	my.utm.946192022-03-31T15:51:34Z http://eprints.utm.my/id/eprint/94619/ Investigating the nexus between GDP, oil prices, FDI, and tourism for emerging economy: empirical evidence from the novel fourier ARDL and hidden cointegration Faisal, Faisal Rahman, Sami Ur Chander, Rajnesh Ali, Adnan Ramakrishnan, Suresh Ozatac, Nesrin Ullah, Mr. Noor Tursoy, Turgut HB Economic Theory HD Industries. Land use. Labor This study is conducted to investigate the nexus between GDP, FDI, oil prices, and tourism using yearly data from 1995 to 2017. The integration order is investigated by applying the ADF, PP and Zivot and Andrews unit root tests that identify the integration order in the presence of one endogenous break. After identifying the unique order of integration, this study applies the Fourier autoregressive distributed lag model (FADL) to investigate the evidence of a long-run relationship. Moreover, the Maki (2012) test confirms the results of FADL in the presence of multiple breaks. This study also confirms the hidden cointegration among the negative components of the variables using the FADL test. Moreover, oil prices and tourist arrivals have a negative and positive effect on GDP under the symmetric framework. However, the effect of FDI is insignificant. Furthermore, the negative component of oil prices have a negative and significant effect, while negative components of FDI and tourist arrivals have positive and significant effect on GDP under the asymmetric framework. The results of the symmetric and asymmetric causality suggest the existence of a causal relationship from FDI to GDP and tourism. This highlights the importance of FDI that affects GDP and tourism. The findings suggest that more inward movement of FDI promotes tourism using the channel of oil prices and GDP. This study also validates the FDI-led growth hypothesis for Turkey in both symmetric and asymmetric (positive components). This highlights that the Turkish government must promote tourism to attract more FDI by ensuring sustainable development. Elsevier Ltd 2021-12 Article PeerReviewed Faisal, Faisal and Rahman, Sami Ur and Chander, Rajnesh and Ali, Adnan and Ramakrishnan, Suresh and Ozatac, Nesrin and Ullah, Mr. Noor and Tursoy, Turgut (2021) Investigating the nexus between GDP, oil prices, FDI, and tourism for emerging economy: empirical evidence from the novel fourier ARDL and hidden cointegration. Resources Policy, 74 . ISSN 0301-4207 http://dx.doi.org/10.1016/j.resourpol.2021.102368 DOI:10.1016/j.resourpol.2021.102368
institution	Universiti Teknologi Malaysia
building	UTM Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	Universiti Teknologi Malaysia
content_source	UTM Institutional Repository
url_provider	http://eprints.utm.my/
topic	HB Economic Theory HD Industries. Land use. Labor
spellingShingle	HB Economic Theory HD Industries. Land use. Labor Faisal, Faisal Rahman, Sami Ur Chander, Rajnesh Ali, Adnan Ramakrishnan, Suresh Ozatac, Nesrin Ullah, Mr. Noor Tursoy, Turgut Investigating the nexus between GDP, oil prices, FDI, and tourism for emerging economy: empirical evidence from the novel fourier ARDL and hidden cointegration
description	This study is conducted to investigate the nexus between GDP, FDI, oil prices, and tourism using yearly data from 1995 to 2017. The integration order is investigated by applying the ADF, PP and Zivot and Andrews unit root tests that identify the integration order in the presence of one endogenous break. After identifying the unique order of integration, this study applies the Fourier autoregressive distributed lag model (FADL) to investigate the evidence of a long-run relationship. Moreover, the Maki (2012) test confirms the results of FADL in the presence of multiple breaks. This study also confirms the hidden cointegration among the negative components of the variables using the FADL test. Moreover, oil prices and tourist arrivals have a negative and positive effect on GDP under the symmetric framework. However, the effect of FDI is insignificant. Furthermore, the negative component of oil prices have a negative and significant effect, while negative components of FDI and tourist arrivals have positive and significant effect on GDP under the asymmetric framework. The results of the symmetric and asymmetric causality suggest the existence of a causal relationship from FDI to GDP and tourism. This highlights the importance of FDI that affects GDP and tourism. The findings suggest that more inward movement of FDI promotes tourism using the channel of oil prices and GDP. This study also validates the FDI-led growth hypothesis for Turkey in both symmetric and asymmetric (positive components). This highlights that the Turkish government must promote tourism to attract more FDI by ensuring sustainable development.
format	Article
author	Faisal, Faisal Rahman, Sami Ur Chander, Rajnesh Ali, Adnan Ramakrishnan, Suresh Ozatac, Nesrin Ullah, Mr. Noor Tursoy, Turgut
author_facet	Faisal, Faisal Rahman, Sami Ur Chander, Rajnesh Ali, Adnan Ramakrishnan, Suresh Ozatac, Nesrin Ullah, Mr. Noor Tursoy, Turgut
author_sort	Faisal, Faisal
title	Investigating the nexus between GDP, oil prices, FDI, and tourism for emerging economy: empirical evidence from the novel fourier ARDL and hidden cointegration
title_short	Investigating the nexus between GDP, oil prices, FDI, and tourism for emerging economy: empirical evidence from the novel fourier ARDL and hidden cointegration
title_full	Investigating the nexus between GDP, oil prices, FDI, and tourism for emerging economy: empirical evidence from the novel fourier ARDL and hidden cointegration
title_fullStr	Investigating the nexus between GDP, oil prices, FDI, and tourism for emerging economy: empirical evidence from the novel fourier ARDL and hidden cointegration
title_full_unstemmed	Investigating the nexus between GDP, oil prices, FDI, and tourism for emerging economy: empirical evidence from the novel fourier ARDL and hidden cointegration
title_sort	investigating the nexus between gdp, oil prices, fdi, and tourism for emerging economy: empirical evidence from the novel fourier ardl and hidden cointegration
publisher	Elsevier Ltd
publishDate	2021
url	http://eprints.utm.my/id/eprint/94619/ http://dx.doi.org/10.1016/j.resourpol.2021.102368
_version_	1729703197749018624
score	13.211869

Investigating the nexus between GDP, oil prices, FDI, and tourism for emerging economy: empirical evidence from the novel fourier ARDL and hidden cointegration

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