Int. J. Bus. Manag. Soc. Res. | Volume 08, Issue 01, 437-442 | https://doi.org/10.18801/ijbmsr.080120.46
Article type: Research article, Received: 11.09.2019; Revised: 01.03.2020 and Published online: 14 March 2020.
Article type: Research article, Received: 11.09.2019; Revised: 01.03.2020 and Published online: 14 March 2020.
Empirical analysis of tourism as a tool to increase foreign direct investment in developing country: Evidence from Pakistan
Ahmad Mubasher, Toryali Khan and Aftab Alam
Department of management sciences, Abasyn University, Peshawar, Pakistan.
✉ For any information: [email protected].
Department of management sciences, Abasyn University, Peshawar, Pakistan.
✉ For any information: [email protected].
Abstract
This study examines the role of tourism in increasing the attraction of foreign investors towards Pakistan. For this purpose, we use time-series data from 1995 to 2018, by considering the tourism on the “total number of tourists” and “total receipts from tourism” by comparing it with Foreign Direct Investment (FDI). The analysis was done with a tool called E-Views and testing the data using the unit root test and Johannsen Cointegration test. For testing the long-term relationship between the variables, the Granger casualty test is used which shows the long-run relation between tourism and foreign direct investment. The results show that tourism is a Granger cause of foreign direct investment by showing two unidirectional relationships between tourism and foreign direct investment. From the result, we concluded that tourism has a constructive impact on FDI, thus Pakistan should promote tourism in the country to increase the level of foreign direct investment in the country through tourism.
Key Words: Pakistan, Tourism, Foreign direct investment (FDI), Tourists, Total receipts of tourism
This study examines the role of tourism in increasing the attraction of foreign investors towards Pakistan. For this purpose, we use time-series data from 1995 to 2018, by considering the tourism on the “total number of tourists” and “total receipts from tourism” by comparing it with Foreign Direct Investment (FDI). The analysis was done with a tool called E-Views and testing the data using the unit root test and Johannsen Cointegration test. For testing the long-term relationship between the variables, the Granger casualty test is used which shows the long-run relation between tourism and foreign direct investment. The results show that tourism is a Granger cause of foreign direct investment by showing two unidirectional relationships between tourism and foreign direct investment. From the result, we concluded that tourism has a constructive impact on FDI, thus Pakistan should promote tourism in the country to increase the level of foreign direct investment in the country through tourism.
Key Words: Pakistan, Tourism, Foreign direct investment (FDI), Tourists, Total receipts of tourism
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MLA
Mubasher, A. et al. “Empirical analysis of tourism as a tool to increase foreign direct investment in developing country: Evidence from Pakistan.” International Journal of Business, Management and Social Research 08(01) (2020): 437-442.
APA
Mubasher, A., Khan, T. and Alam, A. (2020). Empirical analysis of tourism as a tool to increase foreign direct investment in developing country: Evidence from Pakistan. International Journal of Business, Management and Social Research, 08(01), 437-442.
Chicago
Mubasher, A., Khan, T. and Alam, A. “Empirical analysis of tourism as a tool to increase foreign direct investment in developing country: Evidence from Pakistan.” International Journal of Business, Management and Social Research 08(01) (2020): 437-442.
Harvard
Mubasher, A., Khan, T. and Alam, A. 2020. Empirical analysis of tourism as a tool to increase foreign direct investment in developing country: Evidence from Pakistan. International Journal of Business, Management and Social Research, 08(01), pp. 437-442.
Vancouver
Mubasher A, Khan T, Alam A. Empirical analysis of tourism as a tool to increase foreign direct investment in developing country: Evidence from Pakistan. International Journal of Business, Management and Social Research. 2020 March 08(01): 437-442.
Mubasher, A. et al. “Empirical analysis of tourism as a tool to increase foreign direct investment in developing country: Evidence from Pakistan.” International Journal of Business, Management and Social Research 08(01) (2020): 437-442.
APA
Mubasher, A., Khan, T. and Alam, A. (2020). Empirical analysis of tourism as a tool to increase foreign direct investment in developing country: Evidence from Pakistan. International Journal of Business, Management and Social Research, 08(01), 437-442.
Chicago
Mubasher, A., Khan, T. and Alam, A. “Empirical analysis of tourism as a tool to increase foreign direct investment in developing country: Evidence from Pakistan.” International Journal of Business, Management and Social Research 08(01) (2020): 437-442.
Harvard
Mubasher, A., Khan, T. and Alam, A. 2020. Empirical analysis of tourism as a tool to increase foreign direct investment in developing country: Evidence from Pakistan. International Journal of Business, Management and Social Research, 08(01), pp. 437-442.
Vancouver
Mubasher A, Khan T, Alam A. Empirical analysis of tourism as a tool to increase foreign direct investment in developing country: Evidence from Pakistan. International Journal of Business, Management and Social Research. 2020 March 08(01): 437-442.
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