The Dynamic Relationship between Tourism and Economy: Evidence from Nepal

Authors

  • Dipendra Karki Kathmandu University, School of Management

DOI:

https://doi.org/10.3126/jbm.v5i0.27384

Keywords:

Tourism, Economic Development, Nepal

Abstract

The objective of this paper is to analyse the role of tourism in the Nepalese economic growth. I use a trivariate model of real Gross Domestic Product (GDP), international tourist arrivals and real effective exchange rate to investigate the long-run and short-run relationship between tourism and economic growth. The Augmented Dickey-Fuller ( ADF) test is used to determine the order of integration of the series, and I employ the Engle- Granger cointegration procedure to test for the presence of long-run relationship. By using annual macroeconomic data for Nepal for the period of 1962-2011, results reveal that there is a cointegrating relationship between tourism and economic growth.

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Author Biography

Dipendra Karki, Kathmandu University, School of Management

PhD Scholar

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Published

2018-12-01

How to Cite

Karki, D. (2018). The Dynamic Relationship between Tourism and Economy: Evidence from Nepal. Journal of Business and Management, 5, 16–22. https://doi.org/10.3126/jbm.v5i0.27384

Issue

Vol. 5 (2018)

Section

Articles

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