Examining Factors That Influence the International Tourism in Pakistan and Its Nexus with Economic Growth: Evidence from ARDL Approach

Naqib Ullah Khan (), Wajid Alim, Abida Begum, Heesup Han () and Abdullah Mohamed
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Naqib Ullah Khan: School of Public Administration, Central South University, Changsha 410083, China
Wajid Alim: Lahore School of Accountancy and Finance, University of Lahore, Lahore 54660, Pakistan
Abida Begum: School of Marxism, Northeast Forestry University, Harbin 150040, China
Heesup Han: College of Hospitality and Tourism Management, Sejong University, 98 Gunja-dong, Gwanjin-gu, Seoul 143-747, Korea
Abdullah Mohamed: Research Centre, Future University in Egypt, New Cairo 11835, Egypt

Sustainability, 2022, vol. 14, issue 15, 1-15

Abstract: Tourism has played an influential role in the global economies. It is considered the third largest socio-economic sector and contributes about 9% to the world economy’s GDP. Tourism enhances investments, creates job opportunities, harnesses entrepreneurship, and secures heritage and cultural values and norms. However, tourism faces serious challenges in developing countries, especially in Pakistan. Therefore, the main aim of the current study is to examine the influential factors that affect the tourism sector and exhibit the nexus between tourism and economic development in Pakistan. The study collected data from the Global Terrorism Index (GTI), Pakistan Tourism Statistics, and the State Bank of Pakistan (SBP) for the period from 1995 to 2017. The results of the study present that terrorism, which hampers peace and certainty, tourism expenditure and inflation rate, has a strong influence on the tourism sector in Pakistan. Moreover, the study also disclosed that tourism boosts the long-term macro-economic factors and leads to the economic development of Pakistan.

Keywords: tourism; terrorism; inflation rate; tourism expenditure; GDP growth; ARDL (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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