Revisiting resources extraction perspective in determining the tourism industry: Globalisation and human capital for next-11 economies

Abstract

Natural resources and tourism sectors are vital to the growth of many nations and provide several benefits to host towns and nations. Consequently, economic revenue increases, thousands of jobs are created, a country's infrastructure is improved, and cultural participation between foreigners and locals is nurtured. This study examines the influence of economic growth (GDP), Human Capital Index (HCI), Globalization (KOFG), Political Risk (PRI) and Natural resource rent (TNRNTS) on the number of international tourists' arrival (TRSM) in Next-11 economies for 1990–2020. The panel is checked for various diagnostic checks followed by Westerlund panel cointegration test and method of moment quantile regression. The outcomes reveal that GDP, HCI, and KOFG significantly boost tourism, whereas higher political risk discourages international tourists' arrivals in Next-11 economies. Moreover, the panel causality test findings report a two-way causal association between GDP and TRSM, HCI and TRSM, KOFG and TRSM, PRI and TRSM. Any policy change in GDP, HCI, KOFG and PRI will imply Tourism sector of Next-11 economies. According to the empirical results of this work, it is proposed that these nations should further improve their participation in global trade activities through less stringent trade tax and enhance their political system to minimize the risk and activate the tourism industry.