ABSTRACT
Using a dynamic vector error correction model, catering for dynamic, endogeneity, and causality issues, the present study investigates the link between foreign direct investment (FDI) in the tourism sector and sustainable development for the small island economy of Mauritius. Time series data for the period 1990–2019 is being used. The results show that tourism FDI has eventually contributed to sustainable development however non-tourism FDI was detrimental to sustainable development as per the study. Also, the results confirm that the island has sustainable tourism development as tourism has contributed positively to sustainable development. Finally, education and trade openness as well have had a positive impact on sustainable development.
