THE POLITICAL ECONOMY OF TOURISM DEVELOPMENT IN SOUTH ASIA: INSTITUTIONS, INCENTIVES, AND GROWTH OUTCOMES

Abstract

The research investigates the connections between tourism expansion and economic advancement together with institutional framework standards in six nations of South Asia. Each developing economy within this region maintains different political systems which demand a detailed examination of the economic value of tourism development. The research employs ARDL modeling to study the relationship between tourism charges and GDP per capita across India, Pakistan, Bangladesh, Nepal, Sri Lanka and Maldives during 1995 to 2020. The study implements time-series models to evaluate that tourism economic outcomes get impacted by governance performance along with political stability. The economic advantage of tourism grows stronger in nations having robust institutions while maintaining stable political conditions. Tourism-driven growth tends to struggle permanently in countries where there is weak governance together with ongoing conflicts. Institutions with proper regulation function to prevent corruption and maintain policy consistency and this enables tourism to bring maximum benefits. The research shows that tourist economics in South Asia will reach its maximum potential through strengthened governmental control and regional cooperation.

Key Words: Tourism-led growth, Institutional Quality, Political stability, South Asia and Economic Development.