The effect of tourism industry on economic growth of D8 Islamic countries

Abstract

Given the importance of tourism industries and the revenues that can be imported to developing countries, in this current study, we have investigated the effect of tourism revenue on economic growth of D8 Islamic countries. For this purpose, we use panel data method with fixed and random effects estimator, during 1995-2006. The results show that the revenues from tourism have the positive and significant effect on economic growth of these countries. Also the effect of other variables, such as labor force, share of export to GDP, human capital and gross fixed capital formation on economic growth are positive and statistically significant. Hence we suggested that D8 countries increase investment in tourism industries and provide facilities to attract tourism.

Keywords

• economic growth
• tourism revenue
• d8 islamic countries
• panel data method