IDEAS home Printed from https://ideas.repec.org/a/abq/mccss1/v1y2022i4p179-189.html

Tourism Dynamics in a Globalized Economy: Empirical Insights from Pakistan

Author

Listed:
  • Sohaib Ahmed

    (University of Punjab Lahore)

Abstract

The phenomenon of globalization has significantly influenced and assumed control over various aspects of the world, including culture, society, and politics. This study delves into the intricate interplay between tourism dynamics and economic factors within the globalized framework, centering on Pakistan. Employing a variety of statistical models and tests, including the ARDL model and the Cointegration Test, the research scrutinizes the enduring association between GDP per capita and various independent variables. The examination of statistical data, encompassing both long-term and short-term perspectives, demonstrates that the existence of tourism and globalization exert a substantial influence on the economic advancement of Pakistan. In-depth long-run analysis reveals positive coefficients, particularly in international tourism expenditures. The tourism industry emerges as a pivotal driver of economic growth, showcasing its capacity to bolster employment opportunities and generate substantial gains. Contrarily, factors like inflation and gross capital creation exhibit inverse correlations with GDP, highlighting their adverse impact on economic development. Moreover, the immediate effects of tourism expenditures on inflation are evident, while globalization and gross capital formation show statistical insignificance in the short term. These empirical findings underscore the pivotal role of tourism in both short-term and long-term economic growth, corroborating its substantial influence on Pakistan's economic landscape within the globalized milieu. The concept of globalization has exerted a substantial influence on diverse facets of the global economy, encompassing the tourism sector. The objective of this essay is to examine the correlation between globalization and tourism, along with the potential ramifications of inflation on capital and economic growth. Through a thorough analysis of these interrelated concepts, one can attain a comprehensive comprehension of the intricate dynamics in operation

Suggested Citation

  • Sohaib Ahmed, 2022. "Tourism Dynamics in a Globalized Economy: Empirical Insights from Pakistan," Magna Carta: Contemporary Social Science, 50sea, vol. 1(4), pages 179-189, December.
    • Handle: RePEc:abq:mccss1:v:1:y:2022:i:4:p:179-189
    as

    Download full text from publisher

    File URL: https://journal.50sea.com/index.php/MC/article/view/632/1173
    Download Restriction: no
    File URL: https://journal.50sea.com/index.php/MC/article/view/632
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tang, Chor Foon & Tan, Eu Chye, 2015. "Does tourism effectively stimulate Malaysia's economic growth?," Tourism Management, Elsevier, vol. 46(C), pages 158-163.
    2. James E. Payne & Andrea Mervar, 2010. "Research Note: The Tourism–Growth Nexus in Croatia," Tourism Economics, , vol. 16(4), pages 1089-1094, December.
    3. Po, Wan-Chen & Huang, Bwo-Nung, 2008. "Tourism development and economic growth–a nonlinear approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(22), pages 5535-5542.
    4. Camelia Surugiu & Nuno Carlos Leitão & Marius Răzvan Surugiu, 2011. "A Panel Data Modelling of International Tourism Demand: Evidences for Romania," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 24(1), pages 134-145, January.
    5. Tugcu, Can Tansel, 2014. "Tourism and economic growth nexus revisited: A panel causality analysis for the case of the Mediterranean Region," Tourism Management, Elsevier, vol. 42(C), pages 207-212.
    6. Chor Foon Tang & Salah Abosedra, 2014. "Small sample evidence on the tourism-led growth hypothesis in Lebanon," Current Issues in Tourism, Taylor & Francis Journals, vol. 17(3), pages 234-246, March.
    7. Saikkonen, Pentti, 1992. "Estimation and Testing of Cointegrated Systems by an Autoregressive Approximation," Econometric Theory, Cambridge University Press, vol. 8(1), pages 1-27, March.
    8. Sara Proença & Elias Soukiazis, 2008. "Tourism as an Economic Growth Factor: A Case Study for Southern European Countries," Tourism Economics, , vol. 14(4), pages 791-806, December.
    9. 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.
    10. Tang, Chor Foon & Tan, Eu Chye, 2013. "How stable is the tourism-led growth hypothesis in Malaysia? Evidence from disaggregated tourism markets," Tourism Management, Elsevier, vol. 37(C), pages 52-57.
    11. Yang Songling & Muhammad Ishtiaq & Bui Thi Thanh, 2019. "Tourism Industry and Economic Growth Nexus in Beijing, China," Economies, MDPI, vol. 7(1), pages 1-15, March.
    12. Nesrin Tuncay & Ceyhun Can Özcan, 2020. "The effect of Dutch disease in the tourism sector: the case of Mediterranean countries," Tourism and Hospitality Management, University of Rijeka, Faculty of Tourism and Hospitality Management, vol. 26(1), pages 97-114, June.
    13. Jean Max Tavares & Nuno Carlos Leitão, 2017. "The determinants of international tourism demand for Brazil," Tourism Economics, , vol. 23(4), pages 834-845, June.
    Full references (including those not matched with items on IDEAS)

    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. Hasan Murat Ertugrul & Fatih Mangir, 2015. "The tourism-led growth hypothesis: empirical evidence from Turkey," Current Issues in Tourism, Taylor & Francis Journals, vol. 18(7), pages 633-646, July.
    2. Jun Zhang & Li Cheng, 2019. "Threshold Effect of Tourism Development on Economic Growth Following a Disaster Shock: Evidence from the Wenchuan Earthquake, P.R. China," Sustainability, MDPI, vol. 11(2), pages 1-22, January.
    3. Osinubi, Tolulope Temilola & Osinubi , Olufemi Bankole, . "Inclusive Growth in Tourism-led Growth Hypothesis: Evidence from Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 8(2).
    4. 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.
    5. Jun Zhang, 2023. "Spatial effects of tourism development on economic resilience: an empirical study of Wenchuan earthquake based on dynamic spatial Durbin model," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 115(1), pages 309-329, January.
    6. 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.
    7. Mohd Arshad Ansari, 2025. "Tourism and Economic Growth: Evidence from Cross-Country Data with Policy Insights," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 968-1013, March.
    8. Shahzad, Syed Jawad Hussain & Shahbaz, Muhammad & Ferrer, Román & Kumar, Ronald Ravinesh, 2017. "Tourism-led growth hypothesis in the top ten tourist destinations: New evidence using the quantile-on-quantile approach," Tourism Management, Elsevier, vol. 60(C), pages 223-232.
    9. Abdul Rehman & Hengyun Ma & Muhammad Irfan & Munir Ahmad & Ousmane Traore, 2020. "Investigating the Influence of International Tourism in Pakistan and Its Linkage to Economic Growth: Evidence From ARDL Approach," SAGE Open, , vol. 10(2), pages 21582440209, June.
    10. Tugcu, Can Tansel, 2014. "Tourism and economic growth nexus revisited: A panel causality analysis for the case of the Mediterranean Region," Tourism Management, Elsevier, vol. 42(C), pages 207-212.
    11. Ioannis Kostakis, 2020. "Is Tourism a Key Factor for Economic Growth? Fresh Evidence from South Europe Using Panel Cointegration and PVAR Analyses," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 6(2), pages 123-138, December.
    12. Jitendra Sharma & Subrata Kumar Mitra, 2021. "Asymmetric relationship between tourist arrivals and employment," Tourism Economics, , vol. 27(5), pages 952-970, August.
    13. Waheed Ahmad & Tariq Majeed & Zubaria Andlib, 2020. "Tourism Led Growth Hypothesis: Empirical Evidence From Five South Asian Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(1), pages 51-59, March.
    14. Konstantakopoulou, Ioanna, 2022. "Does health quality affect tourism? Evidence from system GMM estimates," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 425-440.
    15. Abdulkarim K. Alhowaish, 2016. "Is Tourism Development a Sustainable Economic Growth Strategy in the Long Run? Evidence from GCC Countries," Sustainability, MDPI, vol. 8(7), pages 1-10, June.
    16. Garrod Brian & Almeida António & Machado Luiz, 2023. "Modelling of nonlinear asymmetric effects of changes in tourism on economic growth in an autonomous small-island economy," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 13(2), pages 154-172, December.
    17. Balsalobre-Lorente, Daniel & Driha, Oana M. & Sinha, Avik, 2020. "The dynamic effects of globalization process in analysing N-shaped tourism led growth hypothesis," MPRA Paper 100078, University Library of Munich, Germany.
    18. Lingaraj MALLICK & Ummalla MALLESH & Jaganath BEHERA, 2016. "Does tourism affect economic growth in Indian states? Evidence from panel ARDL model," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(606), S), pages 183-194, Spring.
    19. Sana Naseem, 2021. "The Role of Tourism in Economic Growth: Empirical Evidence from Saudi Arabia," Economies, MDPI, vol. 9(3), pages 1-12, August.
    20. Shahbaz, Muhammad & Ferrer, Román & Hussain Shahzad, Syed Jawad & Haouas, Ilham, 2017. "Is the tourism-economic growth nexus time-varying? Bootstrap rolling-window causality analysis for the top ten tourist destinations," MPRA Paper 82713, University Library of Munich, Germany, revised 04 Nov 2017.

    More about this item

    Keywords

    ;
    ;
    ;

    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:abq:mccss1:v:1:y:2022:i:4:p:179-189. 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: Dr. Shehzad Hassan (email available below). General contact details of provider: .

    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.