Establishing an Empirical link between Financial Development, CO2 Emissions, Tourist Arrivals and Economic Growth: A Dynamic Panel Data Approach


  • Sumaira Lodhi Lecturer, Department of Economics, Forman Christian College (A Chartered University), Lahore, Punjab, Pakistan.
  • Muhammad Salahuddin Ayyubi Assistant Professor, Department of Economics, Forman Christian College (A Chartered University), Lahore, Punjab, Pakistan
  • Shakeel Hayat Lecturer, Center for Water Informatics & Climate Resilience (CWC), IMSciences, Hayatabad, Peshawar, Khyber Pakhtunkhwa, Pakistan.
  • Zahid Iqbal Associate Professor, Department of Economics, Forman Christian College (A Chartered University), Lahore, Punjab, Pakistan.



CO2 Emissions, Tourist Arrivals, Economic Growth, Financial Development


The study is an attempt to see the impact of changes in environmental, economic, trading, and financial conditions on tourist arrivals of 123 countries from Europe, America, Asia and Africa. The countries were distributed in seven distinct regions on the four continents.  In order to perform an effective empirical analysis, panel data from these countries was obtained from World Development Indicators from 1999 to 2018. The results of panel cointegration revealed the presence of a long-run relationship between tourist arrivals and the explanatory variables included in the model. Environmental conditions were found to adversely affect tourist arrivals with rising CO2 emissions, whereas improvements in financial development contributed towards increased tourist arrivals. The results of the study encouraged the implication of eco-friendly policies and financial development for tourism promotion in selected 123 countries from seven regions.

Author Biography

  • Shakeel Hayat, Lecturer, Center for Water Informatics & Climate Resilience (CWC), IMSciences, Hayatabad, Peshawar, Khyber Pakhtunkhwa, Pakistan.


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How to Cite

Lodhi, S., Ayyubi, M. S., Hayat, S., & Iqbal, Z. (2024). Establishing an Empirical link between Financial Development, CO2 Emissions, Tourist Arrivals and Economic Growth: A Dynamic Panel Data Approach. Qlantic Journal of Social Sciences and Humanities, 5(2), 141-153.

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