Tourism Expansion, Urbanization and Economic Growth in India: An Empirical Analysis

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Dr. P. Srinivasan


Tourism, Urbanization, Economic Growth, Granger Causality, India


The present study empirically investigate the causal nexus between tourism expansion, urbanization and economic growth in India using Granger Causality test over the period from 1995 to 2014. The empirical results revealed that tourism expansion and economic growth are independent of each other in the short-run and does not validate either tourism-led growth hypothesis or growth-led tourism hypothesis. Besides, the test results showed that one-way Granger causality runs from economic growth to urbanization and urbanization to tourism expansion in India. The study suggests that the urbanization and tourism expansion cannot be sustained if economic growth momentum is not enhanced in effective manner. By implementing vigorous economic growth strategies in India, the scope for urbanization and tourism will further widen.

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