Does Tourism Promote Human Development In Vietnam? Evidence From Time Series Analysis

Abstract

Purpose – The research aims to examine whether a relationship exists between tourism growth and human development in Vietnam and which possible mechanisms behind it are. Methodology – The study collected an annual series of data from 1993 to 2020 and employed Autoregressive Distributed Lag (ARDL) approach to explore the cointegration relationship between the variables and Toda – Yamamoto Granger non causality test to explore the causal nexus between tourism and human development. Findings – The empirical results from the cointegration test proved that in the long run, the tourism sector and human development have a positive and significant relationship while government expenditure has a negative impact on human development in Vietnam. Also, the causality outcomes suggested there is a bilateral linkage between tourism and human development. Originality/value – Being one of the first papers examining the impact of tourism on human development in Vietnam, this study provides policy-makers and other decision-makers with meaningful implications for evaluating and improving people’s lives and well-being, given the increasing role of tourism in the socio economic context of Vietnam.