Purpose – Since the decline of export agriculture and the loss of trade preferences, most Caribbean countries have shifted their economies towards the provision of tourism services. Barbados, for example, receives more than two‐thirds of its foreign exchange earnings from tourism. The...

This study applies panel causality methods to investigate the relationship between foreign direct investment (FDI) and tourism in Small Island Developing States (SIDS). The results of the homogenous and instantaneous causality tests suggest that there is a bi-directional causal relationship...