The Dynamic Relationship between Tourism and Economy: Evidence from Nepal


The objective of this paper is to analyze the role of tourism in 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 a long-run relationship. By using annual macroeconomic data for Nepal for the period of 1962-2011, the results reveal that there is a cointegrating relationship between tourism and economic growth. READ MORE>>>

How to cite this article:
Karki, D. (2018). The dynamic relationship between tourism and economy: Evidence from Nepal. The Journal of Business and Management, 5 (1), 16-22. ISSN 2350-8868.

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