Impact of Foreign Direct Investment in tourism and household income in Zanzibar.

Simai, Makame A. (2022) Impact of Foreign Direct Investment in tourism and household income in Zanzibar. Masters thesis, The Open University of Tanzania.

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Abstract

This study examined the causal relationship between Foreign Direct Investment in tourism and household income in Zanzibar. The cointegration analysis was conducted by using the Johansen procedure and the Vector Error Correction Model (VECM) applied to examine both short-run and long-run relationship between variables. Also, the Granger causality was applied to determine the causality between variables. The results found that the variables have both short-run and long-run relationships. Therefore, there is a positive and significant impact of FDI in tourism on household income with unidirectional causality running from FDI in Tourism to Household income. It recommended that, Government of Zanzibar may enhance their household’s income by strategically strengthening the inflow of FDI in tourism, while not neglecting the other sectors which also promote growth. Keywords: Foreign Direct Investment, Tourism, Household Income, Zanzibar.

Item Type: Thesis (Masters)
Subjects: 300 Social Sciences > 330 Economics
Divisions: Faculty of Arts and Social Sciences > Centre for Economics and Community Economic Development
Depositing User: Khadija Katele
Date Deposited: 23 May 2023 08:15
Last Modified: 23 May 2023 08:15
URI: http://repository.out.ac.tz/id/eprint/3788

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