DOES THE TOURISM CONTRIBUTE TO ECONOMIC GROWTH: FRESH EVIDENCE FROM SOUTH ASIAN COUNTRIES?

Abstract

The main aims of the study to investigate the contribution to economic growth by using the data from 1996 to 2022 of South Asian countries and PMG and cointegration techniques for estimation. This study found that the tourisms have positive and significant impact on economic development. A percent increase in the tourism receipts will raise the economic growth by 0.226 percent in the long run. Similarly, the human capital, gross capital formation, labour force participation, FDI, and Political stability have also positive and significant effect on economic growth in the long run. However, the remittance has insignificant effect on economic growth. Therefore, it is concluded that the tourism receipt has significantly contributed in the economic development in the south Asian countries. On the basis of results, this study suggested that the governments and policy makers focus to promote the tourism industry in the country to influence the economic growth.