IDEAS home Printed from https://ideas.repec.org/a/azm/journl/v4y2025i1p37-52.html

The Nexus between Tourism Industry and Unemployment Rate: The Case of South Asian Countries

Author

Listed:
  • Fazal Amin

    (Hunan University, China)

  • Ping Guo

    (Hunan University, China)

Abstract

The study's main aim is to investigate the effects of the tourism industry and the unemployment rate in South Asian Countries. This study utilized the data from 2000-2022 of South Asian Countries namely; Pakistan, Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lanka, based on the availability of data and employed the PMG, and D-H Granger Causality techniques for estimation. This study found that tourism receipts have no effect on the unemployment rate in the long run, while, an increase in tourism receipts will reduce the unemployment rate in the short run. Moreover, the causality analysis shows that no casualty exists between tourism receipt and the unemployment rate, therefore, this study concluded that the tourism industry is more bifacial to influence the employment rate in the short run. This study recommended that the government focus on tourism to overcome the problem of unemployment.

Suggested Citation

  • Fazal Amin & Ping Guo, 2025. "The Nexus between Tourism Industry and Unemployment Rate: The Case of South Asian Countries," Journal of Economic Sciences, Federal Urdu University Islamabad, Department of Economics, vol. 4(1), pages 37-52, June.
    • Handle: RePEc:azm:journl:v:4:y:2025:i:1:p:37-52
    DOI: 10.55603/jes.v4i1.a3
    as

    Download full text from publisher

    File URL: https://jesciences.com/index.php/jes/article/view/104
    Download Restriction: no
    File URL: https://libkey.io/10.55603/jes.v4i1.a3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Stefan F. Schubert, 2016. "A short-run model of a two-sector economy with tourism and unemployment," Tourism Economics, , vol. 22(4), pages 763-778, August.
    2. Chor Foon Tang, 2011. "An exploration of dynamic relationship between tourist arrivals, inflation, unemployment and crime rates in Malaysia," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 38(1), pages 50-69, January.
    3. Deepti Singh & Shruti Shastri, 2020. "Public expenditure on education, educational attainment and unemployment nexus in India: an empirical investigation," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 47(5), pages 663-674, May.
    4. Ngozi Helen Oguchi & Fen Luo, 2021. "Estimating the Nexus of Tourism on Sustainable Development Goals in Nigeria," Technium Social Sciences Journal, Technium Science, vol. 20(1), pages 751-771, June.
    5. Golinelli, Roberto & Orsi, Renzo, 1998. "Exchange Rate, Inflation and Unemployment in East European Economies: The Case of Poland and Hungary," Economic Change and Restructuring, Springer, vol. 31(1), pages 29-55.
    6. Kadiyali, Vrinda & Kosová, Renáta, 2013. "Inter-industry employment spillovers from tourism inflows," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 272-281.
    7. Pesaran, M. H. & Shin, Y. & Smith, R. P., 1997. "Pooled Estimation of Long-run Relationships in Dynamic Heterogeneous Panels," Cambridge Working Papers in Economics 9721, Faculty of Economics, University of Cambridge.
    8. Alegre, Joaquín & Mateo, Sara & Pou, Llorenç, 2013. "Tourism participation and expenditure by Spanish households: The effects of the economic crisis and unemployment," Tourism Management, Elsevier, vol. 39(C), pages 37-49.
    9. Zahra Bakhshi & Mehrzad Ebrahimi, 2016. "The effect of real exchange rate on unemployment," Marketing and Branding Research, EUROKD, vol. 3(1), pages 4-13.
    10. Xiang Wei & Hailin Qu & Emily Ma, 2013. "Modelling Tourism Employment in China," Tourism Economics, , vol. 19(5), pages 1123-1138, October.
    11. Aguayo, E., 2011. "Impact of Tourism on Employment: An Econometric Model of 50 CEEB Regions," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 11(1).
    12. Chor Foon Tang, 2011. "An exploration of dynamic relationship between tourist arrivals, inflation, unemployment and crime rates in Malaysia," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 38(1), pages 50-69, January.
    13. Frenkel, Roberto & Ros, Jaime, 2006. "Unemployment and the real exchange rate in Latin America," World Development, Elsevier, vol. 34(4), pages 631-646, April.
    14. Thompson, Eric C., 2007. "Measuring the Impact of Tourism on Rural Development: An Econometric Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(2), pages 1-8.
    15. Canmian Liu & Ruyun Zhang & Min Wang & Jing Xu, 2018. "Measurement and Prediction of Regional Tourism Sustainability: An Analysis of the Yangtze River Economic Zone, China," Sustainability, MDPI, vol. 10(5), pages 1-20, April.
    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. Shahzad Mushtaq & Faisal Sultan Qadri, 2026. "Nexus between tourism, renewable energy, and unemployment in South Africa. Insight from KRLS analysis," Economic Change and Restructuring, Springer, vol. 59(1), pages 1-29, February.

    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. Giotis Georgios, 2022. "Preliminary Results on the Employment Effect of Tourism. A meta-analysis," Papers 2206.00174, arXiv.org.
    2. Wang, Wenyi & Worrall, John L. & Chen, Yiyi, 2025. "More than just visitors? Distinguishing the criminogenic effects of casinos from general tourism," Journal of Criminal Justice, Elsevier, vol. 101(C).
    3. Hami SAKA & Mehmet ORHAN & M.K. Savaş ÖKTE, 2021. "Empirics of technology and unemployment in advanced countries," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(626), S), pages 183-200, Spring.
    4. Bilal Mehmood & Syed Hassan Raza & Mahwish Rana & Huma Sohaib & Muhammad Azhar Khan, 2014. "Triangular Relationship between Energy Consumption, Price Index and National Income in Asian Countries: A Pooled Mean Group Approach in Presence of Structural Breaks," International Journal of Energy Economics and Policy, Econjournals, vol. 4(4), pages 610-620.
    5. Abdul Saboor & Shumaila Sadiq & Atta Ullah Khan & Gulnaz Hameed, 2017. "Dynamic Reflections of Crimes, Quasi Democracy and Misery Index in Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(1), pages 31-45, August.
    6. Giorgio, Liotti, 2024. "Economic freedom and people at risk of poverty in selected Eurozone countries," International Economics, Elsevier, vol. 180(C).
    7. Daniel Aromi & Marcos Dal Bianco, 2014. "Un analisis de los desequilibrios del tipo de cambio real argentino bajo cambios de regimen," Working Papers 1431, BBVA Bank, Economic Research Department.
    8. Faheem Ur Rehman & Abul Ala Noman & Yibing Ding, 2020. "Does infrastructure increase exports and reduce trade deficit? Evidence from selected South Asian countries using a new Global Infrastructure Index," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-23, December.
    9. Pappas, Nikolaos, 2023. "Came and gone? A longitudinal study of the effects of COVID-19 on tourism purchasing intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    10. Hlongwane, Nyiko Worship & Daw, Olebogeng David, 2021. "An increase of electricity generation can lead to economic growth in South Africa," MPRA Paper 111018, University Library of Munich, Germany.
    11. Chi, Mingyuan & Ping, Wang, 2024. "Resources abundant economies and sustainability of economic growth: A novel panel evidence of high resources economies," Resources Policy, Elsevier, vol. 88(C).
    12. Lin, Boqiang & Omoju, Oluwasola E., 2017. "Focusing on the right targets: Economic factors driving non-hydro renewable energy transition," Renewable Energy, Elsevier, vol. 113(C), pages 52-63.
    13. Gan, Pei-Tha, 2014. "The precise form of financial integration: Empirical evidence for selected Asian countries," Economic Modelling, Elsevier, vol. 42(C), pages 208-219.
    14. Samargandi, Nahla & Fidrmuc, Jan & Ghosh, Sugata, 2015. "Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries," World Development, Elsevier, vol. 68(C), pages 66-81.
    15. Mitra, Subrata Kumar & Chattopadhyay, Manojit & Jana, R.K., 2019. "Spillover analysis of tourist movements within Europe," Annals of Tourism Research, Elsevier, vol. 79(C).
    16. Demir, Firat, 2010. "Exchange Rate Volatility and Employment Growth in Developing Countries: Evidence from Turkey," World Development, Elsevier, vol. 38(8), pages 1127-1140, August.
    17. Dorcas Gonese & Kin Sibanda & Phillip Ngonisa, 2023. "Trade Openness and Unemployment in Selected Southern African Development Community (SADC) Countries," Economies, MDPI, vol. 11(10), pages 1-26, October.
    18. José Manuel Ordóñez-de-Haro & Jordi Perdiguero & Juan-Luis Jiménez, 2020. "Fuel prices at petrol stations in touristic cities," Tourism Economics, , vol. 26(1), pages 45-69, February.
    19. repec:ilo:ilowps:470297 is not listed on IDEAS
    20. Luis N. Lanteri, 2013. "Determinantes económicos del nivel de empleo. Alguna evidencia para Argentina," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 73-100, May.
    21. Pei-Pei Jiang & Yuan Wang & Jin Luo & Lin Zhu & Rui Shi & Song Hu & Xiaodong Zhu, 2023. "Measuring static and dynamic industrial eco-efficiency in China based on the MinDS–Malmquist–Luenberger model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(6), pages 5241-5261, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    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:azm:journl:v:4:y:2025:i:1:p:37-52. 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. Ihtsham Ul Haq (email available below). General contact details of provider: https://www.fuuastisb.edu.pk/ .

    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.