The effect of institutional quality on tourism in designated European Union mediterranean states

Fejzulla Beha ,Darjel Sina ,Filipos Ruxho

doi:10.24294/jipd.v8i6.3412

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The effect of institutional quality on tourism in designated European Union mediterranean states

Fejzulla Beha

Darjel Sina

Filipos Ruxho

Journal of Infrastructure Policy and Development 2024, 8(6), 3412; https://doi.org/10.24294/jipd.v8i6.3412

Submitted：22 Nov 2023

Accepted：23 Jan 2024

Published：04 Jun 2024

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Abstract

This research delves into the correlation between institutional quality and tourism development in a panel of nine Mediterranean countries within the European Union spanning from 1996 to 2021. The study gauges tourism development by examining tourist arrivals, while considering GDP growth rate, inflation, higher education, environmental quality, and trade as control variables representing factors influencing tourism. Institutional quality is measured through indicators such as regulatory quality, rule of law, and control of corruption. Utilizing Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Squares (DOLS) models, the study aims to quantify the impact of these factors on tourism development. The findings indicate a positive relationship between institutional quality and tourism, shedding light on the pivotal role of institutions in tourism management and their influence on the sector. These results have implications for shaping national development strategies.

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References

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