MAKE MOST OF THE KNOWLEDGE NETWORK, JOIN ACADEMIC RESEARCH FOUNDATION

There is evidence that foreign direct investment promotes growth in developing economies. At the same time, economic development also attracts FDI. Further, FDI inflows may also induce investment by national investors. In order to analyse the effect of FDI inflows on economic growth and domestic investment in developing countries, this paper has applied the vector autoregressive model for five Asian countries - India, Malaysia, Pakistan, Sri Lanka and Thailand - for the period 1980-2020. In the VAR framework, the relationship between GDP, FDI, exports, infrastructure and population growth are estimated endogenously by taking two-period lags of each of these variables. The estimated VAR results show that there is a positive impact of FDI on growth in these economies, except Pakistan, and the infrastructure facility is an important factor in attracting FDI. The impact of FDI inflows on domestic investment in India is significantly positive, with a more than two-fold increase in investment by national investors.

Keywords: FDI inflows, economic growth, domestic investment, causality, VAR estimation

JEL classification: B23, C13, C32, E22, F21, F23, F43, G15

The number of researches has been done in relation to general conditions, structure, current state and development process of the hotel industry in Iran but it is still insufficient. Additionally there are limited studies on the health of the Iranian hospitality industry. Thus, to fill these research gaps, the present study tries to explore the developmental evaluation and current status of the Iran’s hospitality industry in the wake of the Sars-Cov-2 (COVID-19) pandemic through qualitative research by using SWOT analysis (SWOT Matrix), confrontation matrix. Moreover, this research shows that apart from health issues, various factors are also influential on development level of the local hotel industry. The study demonstrated that the Sars-Cov-2 (COVID-19) pandemic has had a major impact on the Iran’s hospitality sector. The research also provides insight into how hospitality businesses are responding to this crisis. This critical situation/ slow period has also had some positive effects, which are discussed. Finally, the study made some recovery strategies for industry practitioners and policymakers in response to the Sars-Cov-2 (COVID-19).

Keywords : Hospitality industry, COVID-19, SWOT analysis,confrontation matrix, Iran.

We contribute to the finance literature in two main ways. First, we present a theoretical international capital asset pricing model (CAPM) to price assets in different market structures. Second, we use our model to analyze whether when markets are partially segmented using the local or the global CAPM yields significant errors in the estimation of the cost of capital for a sample of firms from developed and emerging countries.

Keywords: Finance, International Asset Pricing, Firm’s Cost of Capital, Segmentation.

JEL classification: G15, F36, C32.