Asymmetric relationship of environmental degradation and economic growth with tourism demand in Pakistan: evidence from non-linear ARDL and causality estimation

Amir, Muhammad; Siddique, Muhammad; Ali, Kamran; Bukhari, Azaz Ali Ather; Kausar, Naila

doi:10.1007/s11356-021-15971-3

Cited by 10 publications

(2 citation statements)

References 45 publications

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“…Similarly, the impact of inward FDI on economic growth is positive and significant at the 10% level of significance. The positive relationship between inward FDI and growth are consistent with the findings of Chang (2007), Pao and Tsai (2011), Roudi et al (2019), Azam and Abdullah (2021), Balsalobre-Lorente et al (2021b), Aslan et al (2021) and Amir et al (2021).…”

Section: Empirical Results and Discussionsupporting

confidence: 88%

“…The tourism-led growth hypothesis is found valid in low-growth levels, but deviations from this hypothesis are determined after the middle-growth level. However, considering the same variables few researchers also conducted their analysis by considering the data from a single country like, Amir et al (2021) in their recent study examined the associations between the environmental degradation and economic growth for Pakistan tourism demand. The non-linear autoregressive distributed lag modelling was used on the time-series data of 26 years.…”

Section: Introductionmentioning

confidence: 99%

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Analysing Association in Environmental Pollution, Tourism and Economic Growth: Empirical Evidence from the Commonwealth of Independent States

Khan

Azam

Öztürk

et al. 2021

Journal of Asian and African Studies

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Clean and green environment along with sustainable development is the prime objective of every state. We explore empirically the nexus between tourism, environmental pollution measured by carbon (CO2) emissions, population, trade, foreign direct investment (FDI) and economic growth in six countries from the Commonwealth of Independent States over 1995–2018. Traditional panel estimation technique is employed, where the Hausman test suggests fixed-effects over random effect estimator. We also employed the robust least squares (RLS) estimator to confirm the empirical estimates. Results show that a 1% increase in CO2 will attenuate the economic growth by 0.14% and that 1% raise in the tourism activities can boost growth by 0.04%. Both the fixed-effect and RLS estimates reveal that tourism, population growth and trade contribute significantly to economic growth, whereas CO2 adversely affect growth. The Granger causality test shows a two-way causality between economic growth and CO2 and between growth and trade. Empirical results also indicate a one-way causality between growth and FDI, population and FDI, population and CO2 along with population growth and tourism. These findings suggest that adopting effective policies that can expand trade, enhance FDI and promote the tourism sector with minimum environmental damage will ultimately accelerate sustainable economic development.

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