Effects of International Tourist Flow on Startup Financing

Investment Scope and Market Potential Perspectives

Bibliographic Data

ID16911398
AuthorsXiang Gao (0000-0001-6812-8156, Shanghai Business School), Zhenhua Gu (0000-0002-3154-6482, Shanghai Business School), Shuzhen Niu (0000-0002-2799-7141, Sanda University), Sunghan Ryu (0000-0003-3008-9248, Shanghai Jiao Tong University, corresponding author)
Year2022
Volume12
Issue4
Publication date2022-10-01
Open AccessYes
TypeARTICLE
VenueSAGE Open (JOURNAL)
Journal identifiersISSN: 2158-2440 • E-ISSN: 2158-2440
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/21582440221126455
OpenAlexW4300962283
LanguageEN
Citations received2
References cited40

International tourist flow positively affects human capital development and innovation at country and regional levels. This study examines how a country’s international tourist flow affects startup financing based on the “investment scope” and “market potential” perspectives. Analyzing the firm-country-year sample from 1995 to 2014 and the country-year tourism datasets, we find that startups engage in larger venture capital investment deals in countries attracting more international tourists and earning higher tourism revenue. The effect is more substantial for either venture capital-funded or high-technology startups, supporting that international tourist flow can increase the investment scope available to potential investors, specifically in the markets connected to tourism expenditures. Our findings contribute to the literature on the relationship between tourism and economic growth and practitioners and policymakers in the tourism and innovation sectors

Business · Economics · Revenue · Tourism · Venture capital · Corporate Finance and Governance · International Business and FDI · Private Equity and Venture Capital · Finance

Tools

Open DOIOpen Access