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Tourism and Economic Growth in Sri Lanka: An ARDL Bounds Testing Approach

Author

Listed:
  • P. Srinivasan

    (Faculty of Economics, Christ University, Bangalore, Karnataka, India)

  • Santhosh Kumar P. K

    (Faculty of Economics, Christ University, Bangalore, Karnataka, India)

  • L. Ganesh

    (Faculty of CUIM, Institute of Management, Christ University Bangalore, Karnataka, India)

Abstract

The purpose of the study is to examine the impact of tourism on economic growth in Sri Lanka through the Autoregressive Distributed Lag (ARDL) bounds testing approach. The analysis was carried out for the period from 1969 to 2009. By and large, our analysis reveals that the tourism has a positive impact on economic growth in Sri Lanka both in the short-run and long-run. Hence, it is crucial for the Sri Lankan government to achieve unification and stability by focusing on political solutions to a sustainable long-term conflict resolution in order to attract more tourism arrivals and thereby the Sri Lanka can enhance its economic growth.

Suggested Citation

  • P. Srinivasan & Santhosh Kumar P. K & L. Ganesh, 2012. "Tourism and Economic Growth in Sri Lanka: An ARDL Bounds Testing Approach," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 15(45), pages 211-226, September.
    • Handle: RePEc:rej:journl:v:15:y:2012:i:45:p:211-226
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    References listed on IDEAS

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    Cited by:

    1. Arash Ketabforoush Badri & Karim Panahi, 2018. "The Study of Factors Influencing Tourism Demand with Emphasis on the Degree of Openness of the Economy," Noble International Journal of Social Sciences Research, Noble Academic Publsiher, vol. 3(10), pages 78-89, October.
    2. Fernando Sánchez López & José Nabor Cruz Marcelo, 2019. "Kidnapping as a long-term factor for cruise tourism demand: Evidence from Mexico (El secuestro como factor de largo plazo para la demanda de turismo de cruceros: evidencia de México)," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 83(5), pages 185-217, September.
    3. Asif Khan & Sughra Bibi & Lorenzo Ardito & Jiaying Lyu & Hizar Hayat & Anas Mahmud Arif, 2020. "Revisiting the Dynamics of Tourism, Economic Growth, and Environmental Pollutants in the Emerging Economies—Sustainable Tourism Policy Implications," Sustainability, MDPI, vol. 12(6), pages 1-23, March.
    4. Thangamani Bhavan, 2019. "Does Inbound Tourism Encourage Trade Deficit in Sri Lanka?," Asian Development Policy Review, Asian Economic and Social Society, vol. 7(4), pages 253-260, December.
    5. Meng-Chang Jong & Ann-Ni Soh & Chin-Hong Puah, 2022. "Tourism Sustainability: Climate Change and Carbon Dioxide Emissions in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 412-417, November.
    6. Muhammad Tariq Majeed & Maria Mazhar, 2021. "Managing economic growth through tourism: Does volatility of tourism matter?," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 48(1), pages 49-69, March.
    7. Faisal, Faisal & Rahman, Sami Ur & Chander, Rajnesh & Ali, Adnan & Ramakrishnan, Suresh & Ozatac, Nesrin & Ullah, Mr Noor & Tursoy, Turgut, 2021. "Investigating the nexus between GDP, oil prices, FDI, and tourism for emerging economy: Empirical evidence from the novel fourier ARDL and hidden cointegration," Resources Policy, Elsevier, vol. 74(C).
    8. Reena Marwah & Sanika Sulochani Ramanayake, 2019. "The Development Trajectories of Thailand and Sri Lanka: A Comparative Analysis," Millennial Asia, , vol. 10(3), pages 395-416, December.
    9. 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.
    10. Nyoni, Thabani, 2019. "Sri Lanka – the wonder of Asia: analyzing monthly tourist arrivals in the post-war era," MPRA Paper 96790, University Library of Munich, Germany.
    11. Peter Josef Stauvermann & Ronald Ravinesh Kumar & Syed Jawad Hussain Shahzad & Nikeel N. Kumar, 2018. "Effect of tourism on economic growth of Sri Lanka: accounting for capital per worker, exchange rate and structural breaks," Economic Change and Restructuring, Springer, vol. 51(1), pages 49-68, February.
    12. Sadia Bano & Mehtab Alam & Anwar Khan & Lu Liu, 2021. "The nexus of tourism, renewable energy, income, and environmental quality: an empirical analysis of Pakistan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(10), pages 14854-14877, October.
    13. Faiza Manzoor & Longbao Wei & Muhammad Asif & Muhammad Zia ul Haq & Hafiz ur Rehman, 2019. "The Contribution of Sustainable Tourism to Economic Growth and Employment in Pakistan," IJERPH, MDPI, vol. 16(19), pages 1-14, October.
    14. Naradda Gamage, Sisira Kumara & Kumudumali, S. H. T. & Otamurodov, Shavkat, 2020. "The Nexus between Tourism and Economic Growth: A Systematic Literature Review and Future Research Directions," MPRA Paper 104086, University Library of Munich, Germany.
    15. Santhosh Kumar P. K. & Sanjeev M. A., 2020. "Terrorism–Tourism–Economic Growth Nexus in India: An NARDL Evidence," FIIB Business Review, , vol. 9(4), pages 300-308, December.
    16. Uktam Umurzakov & Shakhnoza Tosheva & Raufhon Salahodjaev, 2023. "Tourism and Sustainable Economic Development: Evidence from Belt and Road Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 503-516, March.

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    More about this item

    Keywords

    Unit Root; ARDL-UECM; Cointegration; Schwarz Bayesian Criterion; CUSUM and CUSUMQ.;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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