Tourism and Development in Developing Economies: A Policy Implication Perspective

Asif Khan, Sughra Bibi, Ardito Lorenzo, Jiaying Lyu and Zaheer Udden Babar
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Asif Khan: Department of Tourism and Hotel Management, School of Management, Zhejiang University, Hangzhou 310058, China
Sughra Bibi: Guanghua Law School, Zhejiang University, Hangzhou 310058, China
Ardito Lorenzo: Department of Mechanics, Mathematics and Management, Polytechnic University of Bari, Via E. Orabona 4, 70125 Bari, Italy
Jiaying Lyu: Department of Tourism and Hotel Management, School of Management, Zhejiang University, Hangzhou 310058, China
Zaheer Udden Babar: Department of Tourism & Hospitality, Hazara University, Mansehra 21120, KP, Pakistan

Sustainability, 2020, vol. 12, issue 4, 1-19

Abstract: Tourism is considered a competent driver of development in emerging economies. This study assesses the role of tourism in shaping the fundamental pillars of development in developing economies by targeting the case of Pakistan. Various econometric techniques and approaches were used to investigate the causal relationships of tourism with economic growth, energy and agriculture development, and poverty. This study highlights the important role of tourism in the development of emerging economies. The findings of our study suggest that a 1% increase in tourism significantly enhances gross domestic product (GPD) by 0.051%, foreign direct investment by 2.647%, energy development by 0.134%, and agriculture development by 0.26%, and reduces poverty by 0.51% in the long run. Hence, policy-makers should be informed that through public interventions, tourism can advance development by the design and implementation of integrated policies in developing economies. In addition, policy consistency and coherence are essential for competitiveness, sustainability, and maximizing benefits from tourism.

Keywords: Tourism development; developing economies; sustainability; policy implication; causal relationship (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

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