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The aim of this paper is to examine the impact of tourism arrivals and tourist expenditure on economic growth in case of four developing countries (Brazil, Russia, India, and China) using annual data from 1995 to 2016. To achieve this objective, we apply Dumitrescu–Hurlin causality test and panel data models. The results indicate that tourist expenditure has a positive impact on economic growth. Further, the results show that tourist arrivals do not have any significant effect on economic growth. The direction of causality shows that tourist expenditure has bidirectional causality with economic growth. The policy suggests that the investment environment must be upgraded through appropriate measures such as deregulation in economic activity; developing the port facilities, road network, railways, and telecommunication facilities; achieving clarity in trade policy and flexibility in labor markets; and setting a suitable regulatory framework and tariff structure and the country must grow in terms of better facilities and infrastructure for tourists.

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PurposeThe purpose of this study is to examine the fiscal sustainability issue by dividing the fiscal deficit into high and low regimes using the quarterly data from 1997: Q1 to 2013: Q3. Further, we obtain the optimum level of public debt at which fiscal sustainability can be achieved.Design/methodology/approachThis study uses the Markov Switching-Vector Error Correction Model (MS-VECM) for examining fiscal sustainability and threshold regression model to obtain the optimum level of debt.FindingsThe results derived from MS-VECM reveal the evidence in favor of fiscal sustainability during low fiscal deficit periods. Similarly, using a threshold regression model, the optimum public debt as a percentage to GDP seems to be around 21 per cent on a quarterly basis, beyond this level, public debt hurts economic growth.Practical implicationsFrom the policy front, the government of India should cut down the fiscal deficit only if debt reaches beyond a threshold level.Originality/valueNoting that the vast literature has focused on examining the fiscal sustainability in India, the novelty of this study is to examine the fiscal sustainability by considering high and low deficits regimes using a non-linear approach.

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Purpose This paper aims to investigate whether improvement in human capital can foster energy conservation by reducing the energy consumption in India using annual data from 1980 to 2014. Further, this study examines the relationship between human capital and various forms of energy consumption such as electricity, coal, natural gas, hydrocarbon gas and petroleum consumption. Design/methodology/approach To attain the objective, the study investigates this relation through the auto-regressive distributed lag model (ARDL) technique to find a long-run and short-run relationship. Second, to check the robustness of the results, the authors use alternative econometric methods such as dynamic ordinary least squares and fully modified dynamic ordinary least squares. Findings The results reveal a negative relationship between human capital and energy consumption, which implies that improvement in human capital lowers the energy consumption and various forms energy consumption, except for petroleum consumption. The results derived from ARDL show that there exists a long-run and short-run association between human capital and energy consumption. The results are consistent across the econometric techniques. Practical implications Because G20 countries including India aim at reducing carbon emission to a certain level, this study provides an insight that by emphasizing on human capital, India can reduce energy consumption, which would foster energy conservation. Originality/value To the best of the authors’ knowledge, this the first study in India which attempts to examine the effect of human capital on energy consumption and its various forms.

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