Causality between Tourism and Foreign Direct Investment: An Empirical Evidence from Pakistan

Siddiqui, Farah; Siddiqui, Danish Ahmed

doi:10.18488/journal.8.2019.71.27.44

Cited by 17 publications

(29 citation statements)

References 49 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Toda Yamamoto causality provides support to the findings of Lean and Smyth (2010) and Tang (2008) for Malaysia, Shahbaz and Leen (2012) for Pakistan. This study contradicts the results in long-run causality by Balcilar et al (2019), Jamil and Ahmad (2010); Shahbaz and Faridun (2012); Siddiqui and Siddiqui (2019) for Pakistan. The contradicting results in short-run and long-run causality analysis might be due to the omission of certain variables which are necessary for a dynamic growth model e.g.…”

Section: Further Discussioncontrasting

confidence: 92%

Impact of FDI and Electricity on the Economic Growth of Pakistan: A Long Run Cointegration and Causality Analysis

Qazi¹,

Alam

Ahmad³

et al. 2021

RWE

View full text Add to dashboard Cite

Since the 1980s, analysts have been debating the effect of foreign direct investment (FDI) and electricity consumption (EC) on the economic growth (GDP) of developing countries. The purpose of the study is to estimate the long-run relationship between FDI, electricity consumption and GDP of Pakistan for the period of 1971 to 2017, using ARDL bounds testing, FMOLS and Canonicals cointegration regression. For causality analysis, the study uses a VECM approach for short-run causality directions and MWALD/Toda Yamamoto approach for the long-run causality directions. The cointegration results of all the approaches state that there exists a positive and significant long-run relationship between the concerned variables. The impact of electricity consumption on economic growth is very strong as compared to FDI. Moreover, in the short-run, there is a unidirectional causality running from FDI to GDP and GDP to EC. In the long-run causality, the study finds unidirectional causality for FDI and bidirectional causality for EC with GDP.

show abstract

Section: Further Discussioncontrasting

confidence: 92%

Impact of FDI and Electricity on the Economic Growth of Pakistan: A Long Run Cointegration and Causality Analysis

Qazi¹,

Alam

Ahmad³

et al. 2021

RWE

View full text Add to dashboard Cite

show abstract

“…Results showed that tourism sector performance toward the increase of foreign direct investment and employment generation has reduced from 2013 and 2017. Siddiqui and Siddiqui (2019) analyzed the association among FDI, inflation, exchange rate, GDP, trade openness, and tourism in Pakistan from 1979 to 2017. Results depicted the presence of unidirectional causality from tourism to FDI and trade openness as well as from inflation and GDP to tourism, while, FDI did not cause tourism in Pakistan.…”

Section: Literature Reviewmentioning

confidence: 99%

Asymmetric Impact of FDI and Exchange Rate on Tourism: Evidence From Panel Linear and Nonlinear ARDL Model

Munir

Iftikhar

2021

Sage Open

View full text Add to dashboard Cite

This study analyzes the long run as well as short run linear and nonlinear impact of foreign direct investment (FDI) and exchange rate on tourism in South Asian countries. The study uses annual panel data of five South Asian countries that is Bangladesh, India, Nepal, Pakistan, and Sri Lanka from 1995 to 2019 and applies panel linear autoregressive distributive lag (ARDL) and nonlinear autoregressive distributive lag (NARDL) methodology to analyze the long run and short run relationship among the variables. Results show that an increase in FDI and appreciation of exchange rate contracts tourism, while a decrease in FDI and depreciation of exchange rate expands tourism in the long run. Both FDI and exchange rate shows asymmetric behavior with tourism in the long run in South Asian countries. Results of individual countries show that FDI has asymmetric impact on tourism in Bangladesh, India, Pakistan, and Sri Lanka in the short run, while exchange rate has asymmetric impact on tourism in Bangladesh, India, Nepal, and Pakistan in the short run. Moreover, unidirectional causality exits from FDI, exchange rate, partial negative sum of FDI, and partial positive sum of exchange rate to tourism as well as from tourism to partial positive sum of FDI and partial negative sum of exchange rate. Therefore, there is a need to expand tourism sector through attracting FDI in tourism sector, while FDI attraction and tourism development must be well coordinated among different departments as well as maintain exchange rate at a reasonable level to encourage international tourism.

show abstract

“…Our results indicate that the tourism index has a significant effect on the short-and long-term simultaneous use of renewable energy. Moreover, our findings explored unidirectional causality from FDI to tourism, unlike the conventional scenario (Ben Jebli et al 2019;Siddiqui and Siddiqui 2019), who revealed that FDI unidirectional causes tourism. The causal results also indicate CO 2 e causes tourism; FDI and renewable energy simultaneously causing income in Pakistan.…”

Section: Granger Causality In the Vecm Frameworkmentioning

confidence: 67%

The nexus of tourism, renewable energy, income, and environmental quality: an empirical analysis of Pakistan

Bano

Alam

Khan

et al. 2021

Environ Dev Sustain

View full text Add to dashboard Cite

In the current study, we investigate the dynamic association of tourism, renewable energy, income, foreign direct investment (FDI), and carbon dioxide (CO 2 e) for Pakistan over 1990-2017. We established four plausible hypotheses and verified by employing the autoregressive distributed lags model and Granger causality based on vector error correction model (VECM). Considering the cointegration relationship between the variables, the outcomes of autoregressive distributed lags suggested that tourism increases economic growth, and economic growth induces tourism in the long-run, thus confirming tourismled development, and growth-led tourism hypothesis; similarly, the tourism generates CO 2 e emissions, which supported the tourism-led emission hypothesis. The role of renewable energy consumption found to be a significant moderator, thus helping to enrich tourism, accelerating economic growth, and combating CO 2 e in the country. VECM causal results indicated the significant bidirectional causal linkages between tourism and economic growth-another causality found between tourism and CO 2 e. There is one-way causality from FDI and renewable energy towards income simultaneously. Overall, the designers of policies will find this study useful for policymaking at government levels for smooth economic growth, investment, and sustainable tourism sector.

show abstract

Causality between Tourism and Foreign Direct Investment: An Empirical Evidence from Pakistan

Cited by 17 publications

References 49 publications

Impact of FDI and Electricity on the Economic Growth of Pakistan: A Long Run Cointegration and Causality Analysis

Impact of FDI and Electricity on the Economic Growth of Pakistan: A Long Run Cointegration and Causality Analysis

Asymmetric Impact of FDI and Exchange Rate on Tourism: Evidence From Panel Linear and Nonlinear ARDL Model

The nexus of tourism, renewable energy, income, and environmental quality: an empirical analysis of Pakistan

Contact Info

Product

Resources

About