Tourism Development and Well-Being: The Role of Population and Political Stability

Abstract

This study's primary purpose was to explore the role of tourism development in enhancing well-being in a highly populated developing economy by focusing on the case study of Pakistan. Several econometric techniques and approaches were used on annual time series data covering the 1990–2016 period to investigate the causal relationship of well-being with tourism development, political stability, economics, and population growth. The findings suggested that tourism development enhances economic growth and well-being, hence providing support for the tourism-led growth hypothesis. However, population growth and political instability exhibited a negative relationship with well-being; in addition, the level of political stability determined tourism activities. Hence, this study is unique due to its specific focus on the role of political stability and tourism development in the enhancement of well-being in a highly populated developing economy. Moreover, the practical implications of the study have been provided in light of the main findings.