Political Economy of Tourism Growth in Developing Countries: A Comparative Study of Pakistan and Bangladesh

Abstract

Tourism is a big source of revenue for a country. Political Stability and good governance promote tourism growth of a country by providing a favorable environment for tourism. Present study is empirical evidence of Pakistan and Bangladesh to investigate the role of political stability and governance in tourism growth. Furthermore, along with the principal variable, the study also estimates the role of corruption in tourism growth. Panel times series data, from the year 1996 to 2021, was used for analysis of results. GMM estimation methodology has been employed which show that political stability and governance increase tourism growth in Pakistan and Bangladesh. The finding also shows that variables including in analysis are control of corruption, political economy is also a determinant of tourism. So, finding indicates that political economy along with significant economic growth is desirable for promoting tourism in Pakistan and Bangladesh.  They study concludes that in order to promote tourism in Pakistan and Bangladesh. political stability, good governance, role of law, and regulatory quality are significant.