The Impact of Foreign Direct Investment on Tourism and Economic Growth within SAARC Countries

Abstract

The objective of the current study is to investigate the impact of foreign direct investment (FDI) on tourism and economic growth within SAARC countries during the period 1995 to 2019. This study used secondary data and collected data from the World Development Indicators (WDI). For this purpose, different penal techniques have been used for robust data analysis, such as the unit root test for a stationary process used (ADF) table, the correlations analysis used to find out the relationship between the independent variable and dependent variables, Penal Dynamic Least Squares (PDLS), and Penal Least Squares (PLS). The current study result shows that there is a low positive and significant correlation between tourism and FDI, and this result is in line with the Panel Least Squares result, which also shows a low positive and significant relationship between GDP and FDI.