The Impact of Sustainable Tourism Growth on the Economic Development: Evidence from a Developing Economy
Keywords:Sustainable tourism growth, international tourism receipts, international number of tourist arrivals, economic growth, inflation
Currently, tourism development has become a major component of global economic growth, and this phenomenon requires the attention of scholars and policymakers. This study explores the impact of tourism growth on economic growth as assessed by international tourism earnings, international tourism expenditures, international tourist arrivals, and international tourist departures. As control variables, inflation and foreign direct investment (FDI) were included. From 1991 through 2020, the researchers retrieved secondary data from a secondary source such as World Development Indicators (WDI). The researchers used the Augmented Dickey-Fuller (ADF) test to determine the unit root and the Quantile Autoregressive Distributed Lag (QARDL) model to examine the relationship between variables. The findings indicated that international tourism earnings, international tourism expenditures, international tourist arrivals and departures, inflation, and FDI positively correlate with economic growth. This report provides policymakers with guidelines for developing tourism-based economic growth programs.