Contribution of Tourism and Foreign Direct Investment to Gross Domestic Product: Econometric Analysis in the Case of Sri Lanka

다국어 초록 (Multilingual Abstract)

The purpose of the study to evaluate the contribution of foreign direct investment (FDI) and tourism receipts (TR) to Sri Lanka’s gross domestic product (GDP). This study employs time series annual data for the period from 1978 to 2016 and EViews 10 econometrics software was used for the time series data analysis. Unit root test was done on the variables and the method chosen was the Augmented Dicky – Fuller test. Co-integration analysis was used for the long run relationship and the Granger causality test was performed to investigate the causal relationship. Recently a more conducive environment has been established after the three decade long ethnic war came to an end. In this context, the Sri Lankan government has taken positive measures to attract foreign direct investment and boost tourism in the country. This study intends to evaluate the contribution of Sri Lanka, as these two factors are considered to be very effective at increasing the GDP of a country. The empirical study shows that there is a positive and statistically significant relationship between the variable’s TR and FDI to the GDP in the long run. Results of Granger causality test implied that the two-way causality promoted the economic growth of Sri Lanka.

참고문헌 (Reference)

1 Tiwari, A. K., "Tourism, Exports and FDI as a Means of Growth: Evidence from four Asian Countries" 14 (14): 131-151, 2011

2 Dritsakis, N., "Tourism as a Long-Run Economic Growth Factor : An Empirical Investigation for Greece Using Causality Analysis" 10 (10): 305-316, 2004

3 Jayathilake, P. M. B., "Tourism and economic growth in Sri Lanka : evidence from cointegration and causality analysis" 2 (2): 22-27, 2013

4 Samimi, A. J., "Tourism and Economic Growth in Developing Countries : P-VAR Approach" 10 (10): 28-32, 2011

5 Telfer, D. J., "Tourism and Development in the Developing World" Routledge 2010

6 Khalil, S., "Role of tourism in economic growth : Empirical evidence from Pakistan economy" 46 (46): 985-995, 2007

7 Central Bank of Sri Lanka, "Economics and Social Statistics of Sri Lanka" Central Bank of Sri Lanka 2018

8 Central Bank of Sri Lanka, "Economics and Social Statistics of Sri Lanka"

9 Tourism Development Authority, "Annual Report"

10 Tourism Development Authority, "Annual Report"