Socio-Economic Impacts of Tourism in India: An Empirical Analysis
Abstract
The importance of tourism as an instrument for economic growth and employment generation, particularly in remote and backward areas, has been well recognized world over. It is the largest service industry globally in terms of gross revenue as well as foreign exchange earnings. Tourism plays an effective role in achieving growth with equity objectives which we have set for ourselves. The extant tourism literature suggests that the expansion on tourism sector can contribute to long-run macroeconomic performance of developing countries. India ving high potential for the expansion of tourism industry can be a catalyst for the long-run socio-economic growth.
Thus, we have investigated the impact of tourism on India’s economic growth over a period from 1990 to 2015. The results predict the possibility of long-run equilibrium relationship between tourism and economic growth. This justifies for the identification of the indicators which should be emphasized while formulating plans and policies for tourism sector expansion. The estimation of long-run regression model suggests that the indicators such as foreign exchange earnings, international tourists spending, domestic expenditure on tourism and capital investment by all industries related to travel and tourism are critical in making tourism industry an engine of economic growth.
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[37] Proenca, S., and Soukiazis, E. 2008. Tourism as an Alternative Source of Regional Growth in Portugal: A Panel Data Analysis at NUTS II and III Levels. Portuguese Economic Journal, 7 (1): 43-61.
[38] Proenca, S., and Soukiazis, E. 2008. Tourism as an Economic Growth Factor: A case study for Southern European countries. Tourism Economics, 14 (4): 791-806.
[39] Sahu, S., and Chavali, K. 2008. A Comparative Study of Tourism Websites in India-With Special Reference to South India, Conference on Tourism in India- Challenges Ahead, IIMK, 15-17.
[40] Samina, K., and Mehmood, K. K. 2010. Role of Tourism in Economic Growth: Empirical Evidence from Pakistan Economy. Applied Economics Research Centre, 1-16.
[41] Sara, P., and Soukiazis, E. 2008. Tourism as an economic growth factor: a case study for Southern European countries. Tourism Economics, 791–806.
[42] Stolbov, M. 2015. Causality between Credit Depth and Economic Growth: Evidence from 24 OECD Countries, BOFIT Discussion Papers No.15/2015, Institute for Economies in Transition, Bank of Finland, p.15.
[43] Syahida, H. 2003. Virtual Reality Application in Tourism Sector: Fascinating Penang, Master’s thesis, Universiti Utara Malaysia.
[44] Tosun, C. 1999. An analysis of contributions international inbound tourism to the Turkish economy,” Tourism Economics, 5: 217-250.
[45] Wu, G. X. 2003. The Correlation Analysis on Tourism Development and Economic Development in China. Journal of Shanghai College of Applied Technology, (Natural Science Edition), 4: 29-30, in Chinese.
*** ESCAP 2007. Study on the Role of Tourism in Socio-Economic Development, ST/ESCAP/2478, United Nations, New York.
[2] Balaguer, J., and Cantavella-Jorda M. 2002. Tourism as a long-run economic growth factor: the Spanish case. Applied Economics, 34: 877–884.
[3] Belloumi, M. 2010. The Relationship between Tourism Receipts, Real Effective Exchange Rate and Economic Growth in Tunisia. International Journal of Tourism Research, 12: 550–560.
[4] Bigano, A., Hamilton, J. M., Lau, M., Tol R. S. J. and Zhou, Y. 2007. A Global Database of Domestic and International Tourist Numbers at National and Sub-national Level. International Journal of Tourism Research, 9:147–174.
[5] Chang, L., Mcleer, T. and Michael 2010. A Panel Threshold Model of Tourism Specialization and Economic Development. Retrieved from http://hdl.handle.net/2261/32447, accessed on 12 January, 2012
[6] Chen, Y., Peilin, L. and Chaojun, X. 2006. Research on Causality between Development of Tourism and Economic Growth in China. Journal of Hengyang Normal University, 27(1): 93-97.
[7] Chi, O. H. 2005. The contribution of tourism development to economic growth in Korean economy. Tourism Management, 26: 39-44.
[8] Cortes, I. and Pulina, M. 2006. A further step into ELGH and TLGH for Spain and Italy, Fondazione Eni Enrico Mattei, 118.
[9] Craig, W. and Stanislay, I. 2007. National Tourism Organisations: Measuring the Results of Promotion Abroad. Tourism, 55(1): 65-80.
[10] Dickey, D. A., and Fuller, W. A. 1981. Likelihood Ratio Statistics for Autoregressive Time Series. Econometrica 49(4): 1057-1072.
[11] Dickey, D. A. and Fuller, W. A. 1979. Distribution for Estimators for Autoregressive Time Series with a Unit Root. Journal of the American Statistical Society, 74(366): 427-431.
[12] Dritsakis, N. 2004. Tourism as a Long-Run economic growth factor: an empirical investigation for Greece. Tourism Economics, 10: 305-316.
[13] Eugenio, J., Morales, N. and Scarpa, R. 2004. Tourism and economic growth in Latin American countries: a panel data approach. FondazioneEni Enrico Mattei Nota di Lavoro, 26.
[14] Gunduz, L., and Hatemi-J. A. 2005. Is the tourism-led growth hypothesis valid for Turkey? Applied Economics, 12: 499-504.
[15] Gupta, V. and Gupta, D. 2008. Adoption and Use of ICT in Indian Tourism: Interventions for the Top Tourist Destination of India,” Paper presented at Conference on Tourism in India-Challenges Ahead, IIMK, 15-17 May,
[16] Havi, E. D. K., and Enu, P. 2013. The Impact of Tourism on Economic Performance in Ghana. European Scientific Journal, 9(34): 242-257.
[17] Idowu, O. K. 2008. Tourism - exports and economic growth in Africa, Paper presented at 13th African Econometrics Society (AES) Conference in Pretoria, South Africa.
[18] Imran, R., Saeed, T., Ul-Hag, M. A. and Fatima, A. 2010. Organizational Climate as A predictor of Innovative Work Behavior, African Journal of Business Management, 4(15): 3337- 3343.
[19] Jamieson, W. 2000. The Challenges of Sustainable Community Cultural Heritage Tourism, Walter Asian Institute of Technology, Bangkok, Thailand. Available at: http://www.ucalgary.ca/ev/designresearch/projects/ 2000/cuc/tp/outreach/Walter%20Nepal.pdf
[20] Johansen, S. 1988. Statistical Analysis of Cointegration Vectors. Journal of Economic Dynamics and Control, 12(2-3): 231-254.
[21] Johansen, S. 1989. The Power of the Likelihood Ratio Test for Cointegration, Institute of Mathematical Statistics, University of Copenhagen, (Mimeographed).
[22] Johansen, S. 1991. Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models. Econometrics, 59 (6): 1551–1580.
[23] Johansen, S. 1995. Likelihood-Based Inference in Cointegrated Vector Autoregressive Models. Oxford: Oxford University Press.
[24] Johansen, S., and Jusellius, K. 1990. Maximum Likelihood Estimation and Inference on Cointegration - with Applications to the Demand for Money. Oxford Bulletin of Economics and Statistics, 52 (2): 169-210.
[25] Katircioglu, S. T. 2009. Revisiting the tourism-led growth hypothesis for Turkey using the bounds test and Johansen approach for cointegration. Tourism Management, 30: 17–20.
[26] Kaur, M., Sharma, N. 2015. Impact of Tourism on Economic Growth: An Empirical Study, SAJTH, 8(2): 69-79.
[27] Khaled, O. A. 2009. Analysis of tourism development in Libya. Studies College of Business, 1-92.
[28] Kim, H.J., Chen, M.H., and Jang, S.C. 2006. Tourism expansion and economic development: The case of Taiwan, Tourism Management, 27: 925–93.
[29] Lee, C. and Chang, C. 2008. Tourism development and economic growth: A closer look at panel. Tourism Management, 29: 180-192.
[30] Mazumder, M.N. H., Ahmed, E.M. and Raquib, M.A. 2011. Estimating Total Contribution of Tourism to Malaysian Economy. International Journal of Business: Management and Social Sciences, 2(3): 29-34.
[31] Minciu, R. 2000. Tourism Economy. 2nd Edition, revised, Uranus Publishing House, Bucharest.
[32] Nanthakumar, L., Ibrahim, Y. and Harun, M. 2008. Tourism development policy, strategic alliances and impact of consumer price index on tourist arrivals: The case of Malaysia. Tourismos: An International Multidisciplinary Journal of Tourism, 3: 83-98.
[33] Oh, C.K. 2005. The contribution of tourism development to economic growth in the Korean economy. Tourism Management, 26: 39–44.
[34] Ongan, S, and Demiroz, D. M. 2005. The contribution of tourism to the long-run Turkish economic growth. Ekonomicky Casopis, Journal of Economics, 53: 880–894.
[35] Phillips, P., and Hansen, B. 1990. Statistical Inference in Instrumental Variables Regression with I(1) Processes. Review of Economic Studies, 57(1): 99-125.
[36] Phillips, P. C.B. 1991. Optimal Inference in Cointegrated Systems. Econometrica, 59: 283-306.
[37] Proenca, S., and Soukiazis, E. 2008. Tourism as an Alternative Source of Regional Growth in Portugal: A Panel Data Analysis at NUTS II and III Levels. Portuguese Economic Journal, 7 (1): 43-61.
[38] Proenca, S., and Soukiazis, E. 2008. Tourism as an Economic Growth Factor: A case study for Southern European countries. Tourism Economics, 14 (4): 791-806.
[39] Sahu, S., and Chavali, K. 2008. A Comparative Study of Tourism Websites in India-With Special Reference to South India, Conference on Tourism in India- Challenges Ahead, IIMK, 15-17.
[40] Samina, K., and Mehmood, K. K. 2010. Role of Tourism in Economic Growth: Empirical Evidence from Pakistan Economy. Applied Economics Research Centre, 1-16.
[41] Sara, P., and Soukiazis, E. 2008. Tourism as an economic growth factor: a case study for Southern European countries. Tourism Economics, 791–806.
[42] Stolbov, M. 2015. Causality between Credit Depth and Economic Growth: Evidence from 24 OECD Countries, BOFIT Discussion Papers No.15/2015, Institute for Economies in Transition, Bank of Finland, p.15.
[43] Syahida, H. 2003. Virtual Reality Application in Tourism Sector: Fascinating Penang, Master’s thesis, Universiti Utara Malaysia.
[44] Tosun, C. 1999. An analysis of contributions international inbound tourism to the Turkish economy,” Tourism Economics, 5: 217-250.
[45] Wu, G. X. 2003. The Correlation Analysis on Tourism Development and Economic Development in China. Journal of Shanghai College of Applied Technology, (Natural Science Edition), 4: 29-30, in Chinese.
*** ESCAP 2007. Study on the Role of Tourism in Socio-Economic Development, ST/ESCAP/2478, United Nations, New York.
Published
2017-02-28
How to Cite
ROUT, Himanshu B.; MISHRA, P. K.; PRADHAN, B. B..
Socio-Economic Impacts of Tourism in India: An Empirical Analysis.
Journal of Environmental Management and Tourism, [S.l.], v. 7, n. 4, p. 762-768, feb. 2017.
ISSN 2068-7729.
Available at: <https://journals.aserspublishing.eu/jemt/article/view/735>. Date accessed: 08 nov. 2024.
doi: https://doi.org/10.14505//jemt.v7.4(16).22.
Section
Article
Copyright© 2024 The Author(s). Published by ASERS Publishing 2024. This is an open access article distributed under the terms of CC-BY 4.0 license.