The Impact of Public and Private Investment on Tourism in Pakistan: A Statistical Study from 1995 to 2020

Abstract

This study examines tourism in Pakistan. Tourism has long been an important part of any economy, and it is currently the most major and expanding business. Tourism has long been a critical component of economies worldwide, with the contemporary period viewing it as the most significant and rising business internationally. Pakistan can capitalize on its tourism industry, but government investment is crucial for its growth, potentially boosting national income. Investment in tourism can be public or private. The research examines Pakistan's investment and tourism from 1995 to 2020, utilizing yearly data through basic statistics, and unit root tests. The vector auto-regression (VAR) model is then applied to investigate these variables. This study’s findings play important roles in improving Pakistan’s tourist economy. The results support a long-term relationship between the factors studied. Furthermore, the findings show that both governmental and private investment have a good influence on tourism in Pakistan.