The Impact of Sustainable Tourism Growth on the Economic Development: Evidence from a Developing Economy
- Sri Utami Ady , Economic and Business Faculty, University of Dr. Soetomo, Indonesia
- Massoud Moslehpour , Department of Business Administration Asia University 500, Lioufeng Rd., Wufeng, Taichung 41354, Taiwan & Department of Management California State University, San Bernardino 5500 University Parkway San Bernardino, CA 92407
- Dan Nguyen Van , Faculty of Economics, Academy of Finance, No.58 Le Van Hien Street, Duc Thang ward, Bac Tu Liem district, Ha Noi, Vietnam
- Sobar M. Johari , Department of Sharia Economics, Universitas Muhammadiyah Yogyakarta, Indonesia
- Van Vo Thi Thuy , Faculty of Finance and Accounting, Saigon University, 273 A Duong Vuong Street, Ward 3, District 5, Ho Chi Minh City, 700000, Vietnam
- Vu Minh Hieu , Faculty of Business Administration, Van Lang University, Vietnam - 69/68 Dang Thuy Tram Street, Ward 13, Binh Thanh District, Ho Chi Minh
Keywords:
Sustainable tourism growth, international tourism receipts, international number of tourist arrivals, economic growth, inflation.
Abstract
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.