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Tourism, Remittances, and Foreign Investment as Determinants of Economic Growth: Empirical Evidence from Selected Asian Economies

Author

Listed:
  • Mosab I. Tabash

    (College of Business, Al Ain University, Al Ain P.O. Box 64141, United Arab Emirates)

  • Suhaib Anagreh

    (Higher Colleges of Technology, Dubai P.O. Box 25026, United Arab Emirates)

  • Bilal Haider Subhani

    (School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710049, China)

  • Mamdouh Abdulaziz Saleh Al-Faryan

    (School of Accounting, Economics and Finance, Faculty of Business and Law, University of Portsmouth, Portsmouth PO1 3DE, UK)

  • Krzysztof Drachal

    (Faculty of Economic Sciences, University of Warsaw, ul. Długa 44/50, 00-241 Warszawa, Poland)

Abstract

This research discovers how international tourism affects the economic growth of selected Asian states, e.g., Bangladesh, China, India, Pakistan, and Sri Lanka, throughout 2001–2019. To attain this objective, we have employed various regression estimation approaches, e.g., Fixed Effect Model (FEM) and Fully Modified Ordinary Least Square (FMOLS) technique. The statistical results of the applied techniques reveal that international tourism activities have a positive and significant effect on the GDP growth rate because such kinds of activities considerably contribute to creating opportunities that lead to hoist economic activities and economic growth. Moreover, an influx of tourism increases tourism activities and operations, which opens further doors to opportunities and generates revenue for the government. Similarly, the GDP per capita has been positively and significantly influenced by international tourism activities. The government and host country should emphasize the activities and operations regarding tourism and should also concentrate on the dynamic role, importance, and sensitivity of tourism operations in under-analyzed economies. This research brings a new arrangement of the variable, which has never been considered in prior literature.

Suggested Citation

  • Mosab I. Tabash & Suhaib Anagreh & Bilal Haider Subhani & Mamdouh Abdulaziz Saleh Al-Faryan & Krzysztof Drachal, 2023. "Tourism, Remittances, and Foreign Investment as Determinants of Economic Growth: Empirical Evidence from Selected Asian Economies," Economies, MDPI, vol. 11(2), pages 1-15, February.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:2:p:54-:d:1059642
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    References listed on IDEAS

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    1. Anfeng Xu & Abu Bakkar Siddik & Farid Ahammad Sobhani & Md. Mominur Rahman, 2024. "Driving economic success: Fintech, tourism, FDI, and digitalization in the top 10 tourist destinations," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.
    2. Mohammed Shahedur Rahman, 2023. "Impact of Remittance on Gross Domestic Product (GDP) growth in Bangladesh: An overview from 2000 to 2020," International Journal of Science and Business, IJSAB International, vol. 28(1), pages 183-192.

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