This study utilizes panel data as a means of examining the determinants of foreign direct investment (FDI) in Spain. Data that are taken in the period 1993–2002 are used in order to estimate the determinants of FDI, at the sectoral level, by differentiating the manufacturing sectors, and at the regional level. The analysis investigates the sectoral, regional and macroeconomic variables that have successfully attracted FDI inflows from those that have not. Empirical results suggest that the differential between labour productivity and the cost of labour has been an important determinant of FDI in Spain during the period 1993–2002. Factors related to demand, the evolution of human capital, the export potential of the sectors and certain macroeconomic determinants that measure the differential between Spain and the European Union average, also play a very important role in attracting flows of FDI. Certain policy issues that are relevant to the results are also discussed.

This paper is a study of rural tourism demand in Galicia by means of panel data. The dependent variable used is the number of overnight stays. Empirical results suggest that the number of overnight stays in rural tourism establishments depends basically on economic determinants, such as the price of services in rural tourism establishments, the extent of transport (travel) costs and the economic cycle (tourists' income). The income variable exhibits the highest elasticity. Besides the influence of economic determinants, rural tourism demand depends mainly on the reputation (prestige) and peculiarities of each establishment. In light of these results, conclusions are drawn and policy implications are discussed.

After an explanation of the term ‘academic tourism’, the authors analyse the positive economic impact of academic tourism in Galicia, distinguishing between direct and indirect impacts. For the empirical application, an expenditure survey was carried out and the input–output technique was used. The results demonstrate that, owing to its characteristics, academic tourism has a greater economic impact than conventional tourism. In light of these results, the policy implications are discussed.