The Dynamic Relationship between Tourism and Economy: Evidence from Nepal

  • Dipendra Karki Kathmandu University, School of Management
Keywords: Tourism, Economic Development, Nepal

Abstract

The objective of this paper is to analyse the role of tourism in the Nepalese economic growth. I use a trivariate model of real Gross Domestic Product (GDP), international tourist arrivals and real effective exchange rate to investigate the long-run and short-run relationship between tourism and economic growth. The Augmented Dickey-Fuller ( ADF) test is used to determine the order of integration of the series, and I employ the Engle- Granger cointegration procedure to test for the presence of long-run relationship. By using annual macroeconomic data for Nepal for the period of 1962-2011, results reveal that there is a cointegrating relationship between tourism and economic growth.

Downloads

Download data is not yet available.
Abstract
375
PDF
120

Author Biography

Dipendra Karki, Kathmandu University, School of Management

PhD Scholar

Published
2018-12-01
Section
Articles