Abstract
The motivation of the study was to gauge the impact of environmental quality (EQ), good governance (GG), and globalization (GLO) on tourism development in BRIC nations for the period 1990–2021. The study implements linear and nonlinear frameworks for evaluating the elasticity of explanatory variables on tourism and the directional association by using the non-granger causality test. Combined cointegration test statistics show a long-run association between EQ, GG, and GLO and tourism development in BRIC nations. Furthermore, the long-run association in the empirical estimation is established in both linear and nonlinear framework assessments. Referring to linear assessment, the study documents the positive, statistically significant linkage between good governance, globalization, and tourism development, implying that political stability, governmental effectiveness, and accountability foster tourism development. Furthermore, global economic and financial integration opens a window for tourism development by inducing the economy’s international tourism. On the other hand, environmental degradation reveals adverse statistically significant influences on tourism development, suggesting that the environmental stability in the form of healthy and amicable ambiance positively triggers tourism development, especially in the long run. According to the test statistics of the standard Wald test, it is obvious that there is an asymmetric association between explanatory variables such as EQ, GG, and GLO and tourism development in the long-run and short-run assessment. The directional causality test documented bidirectional causality in explaining the causality between environmental quality and tourism development in Brazil, India, and China, good governance and tourism development in India, and globalization and tourism development in China. On a policy note, the study advocated that BRIC has to ensure environmental protection and governmental effectiveness to promote sustainable development in the tourism sector.
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