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The Impact of Good Governance Index on Revenue from Tourism Industry in Selected Southwest Asian Countries: with Using System Generalized Method of Moments(SGMM)

Conference Paper

The Impact of Good Governance Index on Revenue from Tourism Industry in Selected Southwest Asian Countries: with Using System Generalized Method of Moments(SGMM)

Abstract

We know that the economics of science is about achieving optimal revenue using scarce resources. Similarly, the problem that the world's economies are trying to address is how to achieve an optimal economic share of limited tourism resources. Given that global studies and statistics indicate that good governance is considered to be one of the most important factors in developing countries, it has been termed good governance as a solid building block of development. To this end, the purpose of the present study is to examine the impact of the Good Governance Index, which draws on the six key subsidiaries of the World Bank (freedom of speech and accountability, political stability, government efficiency and effectiveness, legislative quality, rule of law and corruption control). The revenues are from the tourism industry. In this study, panel data were collected from 14 selected Southwest Asian developing countries during the 2011-2016 annual period, and the model was applied and estimated using the system generalized momentum method. The model estimation results show that only the hypothesis of this study which shows the positive and significant effect of good banner index on the amount of revenue from tourism industry has been confirmed and its effect has been positive and significant and also the exchange rate variables. Income and business openness have also had a significant positive impact on the tourism industry's revenue.
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



(Smq.Zabihi@mail.um.ac.ir)




 (M.Hooshmand@um.ac.ir)


(N.Salehnia@um.ac.ir)

             

                
      



             
   


      




JEL O16, L86, L63, C23, C15, C26.


2





 


            

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   
   
               

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


Good Governance
Barnard
Sustainable Human Development
Bovarid
Tourism
UNWTO
Alexandra Leitao
travel agency
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              
       
      
        
Cornelissen
Show & Williams
Hall
4
                 
          
                
               












   








International Tourism
Natural Resources Abundance Theory
Heckscher
Ohlin
Relative cost theory
David Ricardo


5

   


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
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          
  
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
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








Theory of Absolute Superiority and Technology Advancement
Adam Smith
Ecotourism
Theory of Demand Terms
Linder
6
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

 



 OECD 


 OECD 
  


        





                                                                         





7
  
 GLS 





   
IPA





 IPA 
              
                




 

 
 
   
  


       







Importanace-Performance Analysis
8








OECD

OECD




 







   

GMM
GMMS


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   
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Daryaei and et al
Mamipur and Nazari
CPI
Leitao
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GhulamAli and et al
9
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







    

  




Boga and Erkisi
Dynamic Panel Data
System Generalized Method of Moments
Hansen
OLS
Instrumental variables
10
   



GMM







  



          




 

        
    
  










                
    
  

Arlano and Band
Recursive form
Two Step GMM
Serial Correlation
Sargan
Baltagi
World Bank
World Development Indicators (WDI)
World Governance Indicators(WGI)

 


STATA
11
)1(
it
+U
it
(TO)
4
+ β
it
(GDPP)
3
+ β
it
(OER)
2
+ β
it
(GGI)
1
1)-i(t
γ(TR)
+
0i
it
(TR)

it
+v
i
λ+
i
µ=
it
U
i
µ
i
λ






TR
it


GGI



OER



GDPP




TO




TR

 
 


GGI
OECD
PFA SPSS

Official exchange rate
Real Gross domestic product per capita based on purchasing-power-parity in current prices,(From WDI2017
Report)
Trade Openesis
5
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Panyik
Cho
International Tourism Receipts
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

To 


   
 



Lyon
Voice & Accontability
Political Stubility
Government Effectiveness
Requlatory Quality
Rule if Low
Control of Crruption
13







 



 
SGMM



Z

GGI



Ln(OER)



Ln(GDPP)



Ln(TO)



Cons



  

     
     







Buhalis and Deimezi

GMM 
14


                 




   



       












      




 

Wald Test
T Test
J Tests
Instrument Variable(IV)






15
M















 












  
Moving Average
M1
M2

Z









16
                  



  









              
OPECOECD



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5(16), 30-30 (In Persian).
24) Shamai, A., Yousofi Babadi, S. (2018). An Analysis of Good Governance Role on Sustainable Tourism
Revenues (Case: City of MasjedSeleyman). Urban Economics and Management, 6(4(24)), 477-496. (In Persian).
25) Show, G., Williams. A. (2004). Tourism and Tourism spaces. London, stage.
26) Tayebi, Mohammad Reza., Hosseini, Abolhassan & Rezaei, Timur. (2015). Evaluation of Urban Good
Governance Indicators in Tourism Destination Cities by IPA Method (Case Study: Tonekabon City). Urban
Tourism Journal, 2( 3), 219-231 (In Persian).










Voice & Accontability
Political Stubility
Government Effectiveness
Requlatory Quality
Rule if Low
Control of Crruption
18

 SPSS












Kaiser-Meyer-Olkin Measure of Sampling
Adequacy

Approx. Chi-Square

Bartlett's Test of Sphericity
Df

Sig





    



















Cons














LnOER
Kaiser-Meyer-Olkin Measure of Sampling Adequacy
Bartlett's Test of Sphericity
Ershi Qi et al.

19














LnGDP
P














LnTO


LnGGI


LnCC


LnGF


LnPSA
V


LnRQ


LnRL


LnVA














F-
Statistic
s
[Prob.]







No.of
Observa
sion







No.
Country


Z-Statistics
20
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