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Political Economy of Tourism in Pakistan: The Role of Terrorism and Infrastructure Development

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  • Rana Ejaz Ali Khan
  • Muhammad Kamran Rasheed

Abstract

Tourism is one of the world’s biggest industries. Pakistan’s rich history, culture and geographical diversity make it international tourism appeal. International tourism is a source of revenue, employment, foreign exchange and ultimately economic development. There is no desirable change in international tourism in Pakistan. This study investigated the impact of terrorism and infrastructure on tourism in the perspective of political economy. Error correction model (ECM) has been employed on the annual time series data for the years 1972-2013. Tourism is measured by international tourist arrivals in the country. The results have shown that terrorist attacks have adversely affected the tourism but infrastructure and GDP per-capita have positive impact on tourism. It may be concluded that whatever the efforts are being done by the government to increase the international tourism the desired results cannot be attained until terrorism is eliminated. Political economy of tourism revolves around the terrorism and infrastructure.

Suggested Citation

  • Rana Ejaz Ali Khan & Muhammad Kamran Rasheed, 2016. "Political Economy of Tourism in Pakistan: The Role of Terrorism and Infrastructure Development," Asian Development Policy Review, Asian Economic and Social Society, vol. 4(2), pages 42-50.
    • Handle: RePEc:asi:adprev:v:4:y:2016:i:2:p:42-50:id:388
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    Citations

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    Cited by:

    1. Abdur Rauf & Hafiz Muhammad Abubakar Siddique & Qasim Saleem & Sidra, 2020. "Terrorism and International Tourism Nexus: Evidence from Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 387-393.
    2. Zia Ullah & Rana Tahir Naveed & Atta Ur Rehman & Naveed Ahmad & Miklas Scholz & Mohammad Adnan & Heesup Han, 2021. "Towards the Development of Sustainable Tourism in Pakistan: A Study of the Role of Tour Operators," Sustainability, MDPI, vol. 13(9), pages 1-17, April.
    3. Rana Ejaz Ali Khan & Tusawar Iftikhar Ahmad & Jaweria Haleem, 2021. "The Governance and Tourism: A Case of Developing Countries," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 9(3), pages 199-213, September.
    4. Andriansyah Andriansyah & Taufiqurokhman Taufiqurokhman & Ismail Suardi Wekke, 2019. "Impact of Environmental Policy Factors on Tourism Industry: A Study from Indonesia Over Last Three Decades," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 360-365.
    5. Muhammad Athar Nadeem & Zhiying Liu & Yi Xu & Kishwar Nawaz & Muhammad Yousaf Malik & Amna Younis, 2020. "Impacts of terrorism, governance structure, military expenditures and infrastructures upon tourism: empirical evidence from an emerging economy," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(1), pages 185-206, March.

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