The Impact of Infrastructure and Environmental Quality on Tourism Development: Evidence from Pakistan

Rabia Bano; Faqeer Muhammad; Naveed Razaq

doi:10.63056/

Authors

Rabia Bano Faysal Bank, Gilgit-Baltistan, Pakistan Author
Faqeer Muhammad Department of Economics, Karakoram International University, Gilgit, Pakistan Author
Naveed Razaq School of Foreign Language and School of Economics and Management, Xinyu University, Jiangxi, China Author

DOI:

https://doi.org/10.63056/

Keywords:

Tourism, infrastructure, Environmental quality, Economic Growth

Abstract

Tourism has key role in economic development of any region, and several factors influence tourism like political stability, weather, and infrastructure etc. Therefore, this study aimed to explore the role of the infrastructure and environmental quality on tourism in Pakistan. The empirical analysis is conducted by using fully modified ordinary least squares (FMOLS). The data is obtained from World Development Indicator from 1975 to 2022. The study results have shown the long run relationship between tourism, infrastructure, environmental quality, economic growth, and trade openness. In addition, a significant and positive influence of the infrastructure on tourism development in Pakistan. Likewise, environmental quality has a positive and statistically significant influence on tourism in Pakistan. The effect of trade openness is insignificant while growth has significant effect on tourism. These finding highlights the importance of infrastructure and environment in enhancing tourism. Therefore, government should improve infrastructure and quality of the environment.