The rapid economic development of China and the industrial shift from its eastern to western provinces have resulted in significant negative impacts on the environment. Recently, tourism has emerged as an alternative for economic and environmental development, but it is a double-edged sword. Without the required measures to protect environment, the opportunity cost of tourism is environmental degradation. The western part of China holds a significant advantage for the development of travel and tourism (T&T), due to One Belt One Road (OBOR), unique ancient culture and spectacular variety of natural scenic spots. This region is among the less explored and less developed, but important, parts of China. Taking this point into consideration, this paper aims to examine the impact of tourism on the environmental pollution of five provinces located in the heart of OBOR over the period of 1991–2016. To explore this link, we used the fully modified ordinary least squares (FMOLS) approach and Gregory-Hansen test for robustness check. We applied the Zivot-Andrews unit root test to deal with structural breaks in data. Our results confirm a negative impact of tourism on environment for Ningxia, Qinghai, Gansu, and Shanxi. However, tourism improves the environmental quality of Xinjiang. The negative impact of energy consumption and GDP growth is significant than tourism. Our findings suggest that the relationship varies for different provinces in the same region depending on the specific provincial features and government policies. Furthermore, tourism development has great potential to improve the economic and environmental sustainability in these provinces.
The aim of this paper is to reinvestigate the impact of foreign direct investment (FDI) inflows on welfare or poverty reduction in the Association of Southeast Asian Nations (ASEAN) and the South Asian Association for Regional Cooperation (SAARC) economies. We used FDI net inflows per capita and the United Nations Development Program’s Human Development Index (HDI) as the principal variables ranging from 1990 to 2014. Our analyses confirm the positive and strongly significant relationship between FDI net inflows and poverty reduction in Asia. However, it indicates significant differences between South Asia and Southeast Asia. Generally, we find that FDI has a greater impact on welfare in SAARC countries than in ASEAN countries. Our results hold true for both HDI and real gross domestic product (GDP), and are shown to be robust using both panel and pool model specifications.
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