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Umer J Banday and Saba Ismail
''Does tourism development lead positive or negative impact on economic growth and environment in BRICS countries? A panel data analysis''
( 2017, Vol. 37 No.1 )
Tourism has been a new dimension in economics of international trade in the recent years for the developing countries. It contributes to the economic growth by contribution to the foreign exchange for many nations. The present study is an attempt to examine the relationship between tourism revenue, economic growth and its implications for the environment. Panel data approach for the period of 1995-2013 has been applied to the BRICS countries to investigate the interrelationship among variable using ARDL co-integration model. The result validates ‘tourism led-growth hypothesis' for BRICS countries which implies that the growth of tourism in BRICS nations has a positive impact on economic growth. The study further reveals that the growth in tourism leads to both positive and negative effects on the economy over time. The study used renamed Environmental Kuznets Curve to reveal that not all environmental controlling measures improve but only pollution controlling measures helps improving income. The study concludes that growth in tourism generates negative externalities in the form of pollution, which needs to be addressed by the government to enhance sustainability in economic growth and development in BRICS nations.
Keywords: Tourism Revenue; Economic Growth; ARDL; Co-integration; BRICS.
JEL: Z1 - Cultural Economics; Economic Sociology; Economic Anthropology: General
L8 - Industry Studies: Services: General
Manuscript Received : Aug 15 2016 Manuscript Accepted : Mar 21 2017

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