Role of tourism in economic growth: Empirical evidence from Pakistan economy

Abstract

Tourism activities are multi-pronged and mostly have a positive impact on any economy. This paper examines the role of tourism in the short-run economic development in Pakistan. We use the error-correction model, and also the causal relationship between tourism receipts and economic expansion (GDP). The results show that there is a strong relationship among tourism, receipts, and economic expansion; and economic expansion is necessary for tourism development in Pakistan. © The Pakistan Development Review.