THE IMPACT OF TOURISM ON ECONOMIC WELL-BEING IN PAKISTAN

Focusing on the role of institutional quality and renewable energy, this study examines the relationship between tourism and Pakistan’s economic well-being. Tourism is widely recognized as an important driver of job creation, foreign exchange earnings and economic growth; however, its broader impact on economic well-being in Pakistan remains underexplored. To address this gap, the research investigates the effects of tourism in Pakistan over the period 1990–2020 by applying the Auto-Regressive Distributed Lag (ARDL) approach. The ARDL estimation reveals significant long-run relationships between tourism demand, institutional quality, renewable energy, inflation, and economic well-being in Pakistan. The findings indicate that tourism demand exerts a negative and statistically significant effect on economic well-being. The findings also indicate that institutional quality and renewable energy positively contribute to well-being, whereas inflation exhibits negative long-run effects. These results emphasize that Pakistan’s economic well-being depends not only on expanding tourism but also on strengthening governance, managing inflationary pressures, and effectively integrating renewable energy into the sector. The evidence supports the need for sustainable tourism strategies that enhance growth while safeguarding welfare.

Hali tarjima qilinmagan