Financial Development, Tourism and Economic Growth Nexus: An Empirical Evidence from Pakistan

Abstract

This study explores the connection between tourism and economic growth keeping in view the importance of financial development in Pakistan. The outcomes of the study revealed that tourism and economic growth are co-integrated. Moreover, the results highlighted that tourism upsurges economic growth both in the short and long term in Pakistan. Similarly, the financial liberalization by and large has also the same impact on economic growth like tourism. Nonetheless, the coefficient of financial liberalization is having correct sign, but not that much overwhelming effect in the short run.