ADSU International Journal of Applied Economics, Finance and Management

Impact Of Institutional Quality And Infrastructural Development On Foreign Tourists’ Arrival In Africa

Abstract

The study examines how institutional quality and infrastructural development affect the life of foreign tourists in Africa. Secondary data were obtained from various sources such as the World Bank and United Nations World Tourism Organization and Generalized Method of Moments which is a dynamic panel data estimation technique that was applied to test the hypotheses. We employed correlation matrix to ascertain the presence of multicollinearity given the exogenous variables used in the study. The results show that the level of infrastructural development failed to impact positively on the life of the foreign tourists in Africa. However, the findings also demonstrate the existence of a direct relationship between institutional development and the well-being of the foreign tourists in the Africa region. The study concludes that the life of the foreign tourists in the Africa region gained a positive impact in education as well as the investment sector. Therefore, the study recommends that the government should allocate higher funds for infrastructural development as this could stimulate higher tourists to Africa and impact their well-being.