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Theoretical and Applied Economics
No. 1 / 2016 (606), Spring

Does tourism affect economic growth in Indian states? Evidence from panel ARDL model

Lingaraj MALLICK
Maulana Azad National Urdu University, Hyderabad, India
Ummalla MALLESH
School of Economics, University of Hyderabad, India
Jaganath BEHERA
School of Economics, University of Hyderabad, India

Abstract. We investigate the relationship between tourism and economic growth in 23 Indian States from 1997 to 2011. Using panel autoregressive distributed lag model based on three alternative estimators such as mean group estimator (MG), pooled mean group (PMG) and dynamic fixed effects (DFE), we found that there is a significant relationship between tourism and economic growth in the long-run but not in short-run in India.

Keywords: Economic growth, Tourism development, Panel ARDL, India.

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The Economicity. The Epistemic Landscape, Marin Dinu, 2016

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