The Effect of tourism industry on economic growth : the case of Iran

Subject Areas : Financial Economics

Hosein Sharifi-Renani ¹ , Maryam Safaei-Shakib ² , Mostafa Emadzadeh ³

1 - Assistant Professor of Department of Economics, Khorasgan (Isfahan) Branch, Islamic azad University
2 - MA Student of Economics, Khorasgan (Isfahan) Branch, Islamic azad University
3 - Professor of Department of Economics, Khorasgan (Isfahan) Branch, Islamic azad University

Received: 2015-06-11 Accepted : 2015-06-11 Published : 2009-03-21

Keywords: Economic Growth, Tourism, Autoregressive Distribution Lags approach (ARDL),

Abstract :

Economic growth has been one of the quantitative indexes to measure the rate of economic development, in different countries, and factors affecting on it, are very important. This index is affected from several factors, meanwhile, tourism capacities such as, creating job opportunities, infrastructural development, entry of foreign tourists, increasing demand for domestic commodities, increasing exports and increasing the possibility of foreign investment, Of the major reasons that should be a special effort in line with economic growth. Recognizing the superior position of tourism industry, in different patterns of economic development, can be strengthened economic growth. The main goal of this paper reviews the effects of capital industry and entry of foreign tourists on economic growth of Iran in a time period between 2991 – 3119 by Autoregressive Distribution Lags approach (ARDL). Estimation results show that, the capital that used in the tourism sector, has a positive and significant effects on economic growth in Iran. Also entry of foreign tourists, shows positive and significant effects on it.