IDEAS home Printed from https://ideas.repec.org/a/nrb/journl/v24y2012i1p4.html
   My bibliography  Save this article

Does Tourism Really Matter for Economic Growth? Evidence from Nepal

Author

Listed:
  • Shoorabeer Paudyal, Ph.D.

    (Tribhuvan University)

Abstract

Tourism seems to be widely recognized as the one among a few sectors in Nepal which can be an engine of economic growth. However, there are few empirical studies about Nepalese tourism. This paper, thus, attempts to examine the impact of t ourism and other related macroeconomic variables on the economic growth of Nepal by deriving tourism income multiplier from the Keynesian macroeconomic model. The three stage least square and seemingly unrelated regressions are the techniques employed for estimating the value of multiplier. The estimated value of multiplier based onregression results over thirty six year period from 1975 to 2010 is estimated at 1.21. In addition, Granger causality tests are used to confirm the direction of the impact of one variable on another variable, which reveals that there exists bi-directional impact in the case of tourism receipts and GDP. In addition, tourism receipts are found to have bi-directional relationship with some other variables such as GNI, exports, private consumption, imports and so on. Thus, tourism multiplier and the Granger causality tests show that tourism is important component for economic growth in Nepal.

Suggested Citation

  • Shoorabeer Paudyal, Ph.D., 2012. "Does Tourism Really Matter for Economic Growth? Evidence from Nepal," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 24(1), pages 48-66, April.
    • Handle: RePEc:nrb:journl:v:24:y:2012:i:1:p:4
    as

    Download full text from publisher

    File URL: https://www.nrb.org.np/contents/uploads/2019/12/NRB_Economic_Review-Vol_24-1_April_20124_Does_Tourism_Really_Matter_for_Economic_Growth_Evidence_from_NepalShoorabeer-Paudyal-Ph.D..pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. S.R. Osmani & B.B. Bajracharya, 2008. "Nepal," Chapters, in: Anis Chowdhury & Wahiduddin Mahmud (ed.), Handbook on the South Asian Economies, chapter 5, Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nepal, Rabindra & al Irsyad, M. Indra & Nepal, Sanjay Kumar, 2018. "Tourist arrivals, energy consumption and pollutant emissions in a developing economy–implications for sustainable tourism," Working Papers 2018-10, University of Tasmania, Tasmanian School of Business and Economics.
    2. Gautam, Bishnu Prasad, 2014. "Economic Dynamics of Tourism in Nepal: A VECM Approach," MPRA Paper 58102, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maharjan, Keshav Lall & Joshi, Niraj Prakash, 2009. "Relationship between Income-poverty and Food insecurity in Rural Far-western Mid-hills of Nepal," 2009 Conference, August 16-22, 2009, Beijing, China 51462, International Association of Agricultural Economists.
    2. Shoorabeer Paudyal Ph.D., 2012. "Does Tourism Really Matter for Economic Growth? Evidence from Nepal," NRB Economic Review, Nepal Rastra Bank, Research Department, vol. 24(1), pages 48-66, April.
    3. Pelaez-Samaniego, Manuel Raul & Riveros-Godoy, Gustavo & Torres-Contreras, Santiago & Garcia-Perez, Tsai & Albornoz-Vintimilla, Esteban, 2014. "Production and use of electrolytic hydrogen in Ecuador towards a low carbon economy," Energy, Elsevier, vol. 64(C), pages 626-631.
    4. Joshi, Niraj Prakash & Maharjan, Keshav Lall & Piya, Luni, 2010. "Poverty and Food Insecurity in Nepal A Review," MPRA Paper 35387, University Library of Munich, Germany.
    5. Yadav Uprety & Ram Poudel & Hugo Asselin & Emmanuel Boon, 2011. "Plant biodiversity and ethnobotany inside the projected impact area of the Upper Seti Hydropower Project, Western Nepal," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 13(3), pages 463-492, June.
    6. Sovacool, Benjamin K. & Brossmann, Brent, 2010. "Symbolic convergence and the hydrogen economy," Energy Policy, Elsevier, vol. 38(4), pages 1999-2012, April.
    7. Huang, Yongfu & Quibria, M. G., 2013. "The Global Partnership for Inclusive Growth," WIDER Working Paper Series 059, World Institute for Development Economic Research (UNU-WIDER).
    8. Kiran Rupakhetee & Almas Heshmati, 2011. "Rhetorics vs. Realities in Implementation of e-Government Master Plan in Nepal," TEMEP Discussion Papers 201175, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised May 2011.

    More about this item

    Keywords

    Tourism receipts; tourism income multiplier; three stage least square;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nrb:journl:v:24:y:2012:i:1:p:4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Publication Division NRB (email available below). General contact details of provider: https://edirc.repec.org/data/nrbgvnp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.