Relationship between Growth and Tourism: An Empirical Investigation from India

Abstract

Purpose: A Purpose: India, being on path of modern economic growth through structural transformation, tourism is the best vehicle to accelerate it. Thereby, it  contributes majorly in the growth of economy. Many of such, direct economic benefits includes employment, income, foreign exchange, increased government revenue etc. The present paper makes a modest attempt to examine the correlation between GDP and foreign exchange earnings (FEE) from tourism.

Design/Methodology/Approach: The present paper uses the timeline data collected from various sources from 2004- 2018. ADF test, Cointegration approach and causality test are being applied to achieve the objectives of the study.

Findings: The findings revealed that both variables cointegrated, but there is an absence of causality among them.

Implications: The present study adds to the present literature which would be beneficial for future research and it will also help the policy makers in understanding the trends to have an analytical viewpoint on the subject.