The Influence of the Quality of Institution on Tourism in the selected mediteranian countries of the European Union

Resumo

The present study aims to investigate the effect of the quality of institutions on tourism development in a panel of 9 Mediterranean countries from the European Union for the time period of 1996-2021. The development of tourism is measured by the number of arrivals in tourism. The control variables used, which also represent the determinants of tourism, are GDP growth rate, inflation, higher education, quality of the environment, and trade. Quality of institutions indexes is constructed based on indicators of government effectiveness, political stability, regulatory quality, rule of law, and voice and accountability. In order to estimate the impact of selected determinants in the development of tourism, we used the Generalized Method of Moments-GMM model. According to the obtained results, it can be concluded that there is a positive connection between the quality of institutions and tourism. The results of this research should provide insight into the most important determinants of management and institutions and explain more deeply their influence on events in the sphere of tourism. All of the above knowledge should be of interest to the management bodies in charge of creating national development strategies