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Investigating the Influence of International Tourism in Pakistan and Its Linkage to Economic Growth: Evidence From ARDL Approach

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  • Abdul Rehman
  • Hengyun Ma
  • Muhammad Irfan
  • Munir Ahmad
  • Ousmane Traore

Abstract

Tourism is a key source of income and employment today, and different parts of the world are heavily dependent on it. The main purpose of this article was to demonstrate the consequences of long-run and short-run relationship on international tourism in Pakistan and its impact on economic growth by applying an autoregressive distributed lag (ARDL) bounds testing approach. Augmented Dickey–Fuller unit root test was employed to check the stationarity of the variables, while an ARDL bounds testing approach was used to measure the long-run and short-run dynamics linkage among the study variables. The results show that international tourism and expenditures for passenger transport items have a positive impact on economic growth. Similarly, long-run dynamics also revealed that international tourism expenditures for travel items and international tourism expenditures, international tourism receipts for passenger transport items and international tourism receipts for travel items also had a positive impact on the economic growth. The present analysis of the long-run suggested better policies should be implemented to attract more international tourists to the country.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:sagope:v:10:y:2020:i:2:p:2158244020932525
    DOI: 10.1177/2158244020932525
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    Cited by:

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    2. Zargham Ullah Khan & Muhammad Bilal Ahmad & Khadija Saeed, 2022. "The Impact of COVID-19 on Tourism and Hospitality Industry: A Qualitative Investigation in Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(4), pages 439-446, December.
    3. Azam Muhammad & Mahdiat Mahdiat & Hafeez Muhammad Haroon & Bakhtyar Baher, 2022. "Investigating the Role of Tourism in Economic Growth: Empirical Evidence from Pakistan," Polish Journal of Sport and Tourism, Sciendo, vol. 29(1), pages 39-47, March.
    4. Yugang He & Xiaodan Gao & Renhong Wu & Yinhui Wang & Baek-Ryul Choi, 2021. "How Does Sustainable Rural Tourism Cause Rural Community Development?," Sustainability, MDPI, vol. 13(24), pages 1-20, December.
    5. Sahib Oad & Qu Jinliang & Syed Babar Hussain Shah & Shafique-ul-Rehman Memon, 2022. "Tourism: economic development without increasing CO2 emissions in Pakistan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 4000-4023, March.
    6. Destek, Mehmet Akif & Aydın, Sercan, 2021. "An Empirical Note on Tourism and Sustainable Development Nexus," MPRA Paper 114219, University Library of Munich, Germany.

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