TY - JOUR AU - Khan, Abdul Mahidud AU - Amin, Sakib Bin AU - Ahmed, Adib AU - Sultana, Tanzila PY - 2021/03/30 Y2 - 2024/03/28 TI - Tourism Development and Economic Growth in Bangladesh: New Evidence from Nonlinear Autoregressive Distributed Lag JF - International Journal of Economics and Financial Issues JA - IJEFI VL - 11 IS - 2 SE - Articles DO - UR - https://econjournals.com/index.php/ijefi/article/view/11040 SP - 100-107 AB - <p>We examine the long-run relationship between tourism development and economic growth using the Nonlinear Autoregressive Distributed Lag (NARDL) model for Bangladesh using annual data from 1980-2016. We find an asymmetric relationship between tourism and Bangladesh's economy since a one percent increase in tourism receipt increases economic growth by about 0.19 percent. On the contrary, due to a one percent decline in the tourism receipt, economic growth will decrease by about 0.66 percent. So, the decline in tourism receipt will have a higher negative impact on economic growth than the increase in the tourism receipt in Bangladesh, which result is important for current pandemic situation in tourism due to Covid-19. We also reveal that the impact of positive change in the tourism revenue on GDP stabilizes around 8 years; however, an adverse change on GDP does not stabilize in 15 years. We recommend that a systematic allocation of resources is required to promote and stimulate the tourism industry in Bangladesh for a favourable impact on the country's long-run economic development.</p><p><strong>Keywords</strong><em>: </em>Tourism Development; Economic Growth; NARDL; Bangladesh; Asymmetry</p><p><strong>JEL Classifications:</strong> C32, O50, Z32</p><p><span lang="EN-US">DOI: </span><span lang="EN-US"><a href="https://doi.org/10.32479/ijefi.11040"><span>https://doi.org/10.32479/ijefi.11040</span></a></span></p> ER -