Dynamics and causality among economic growth, financial development and budgetary allocation to the tourism sector of Bangladesh

Abstract

Tourism contributes to economic growth and financial development in many countries around the world. The aim of the study is to examine the cause and effect relationship between economic growth, financial development and budgetary allocation to the Bangladesh tourism industry during 2000-2019. Several methods such as Augmented Dickey-Fuller (ADF), Phillips-Perron (PP), Johansen-Juselius Cointegration, and Granger Causality tests have been applied to measure the associations between the variables. The results show that there is a cause and effect relationship between the budgetary allocations and economic growth and budgetary allocation also causes of financial development.