From Tourism to Investments, Tracing Economic Footprints in Thailand

Abstract

International tourism and foreign direct investment (FDI) constitute the bedrock of economic vitality, propelling growth and progress in the economies. This study delves into the intricate relationships among international tourism, FDI, and economic growth within the context of Thailand. Nevertheless, a tourism development index is created by pooling distinct components of global tourism to evaluate the aggregate effect on economic growth. Using data from 1991 to 2021 and the ARDL bound testing approach to cointegration, this study indicates that international tourism and FDI have long-term positive impacts on Thailand's economic growth. The sensitivity and stability tests were used to assess the robustness of these results. The study's results promise to influence policy choices and shape industry approaches while enriching discussions on the economic impacts of the factors investigated.