Abstract
The study examines the impact of foreign direct investment (FDI) and governance quality on tourism demand in selected 10 African countries. We further examine the role of governance quality in the FDI-tourism demand nexus. The study employs panel data of 10 most preferred tourist countries in Africa over a period of 1995–2019. These data are sourced from World Bank Development Indicators and World Bank Governance Indicators’ Database. Panel unit root tests, Johanson-Fisher Cointegration Test and panel cointegrating regression are employed. The results reveal that there is a long run relationship among the variables and FDI has a positive and significant impact on tourism. Similarly, the quality of governance improves the level of tourism arrivals. In addition, quality governance plays a significant role in the tourism sector of the selected countries in Africa. The policy implications are as well discussed.
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