The Impact Of Inbound Tourism On Economic Growth In Mongolia

The world is in the process of developing the tourism sectors.And so does Mongolia.Currently tourism is an important source of Mongolian foreign exchange.Tourism is one of the world's largest and fastest growing industries,and a key strategic of economic growth.Since the empirical findings associated with the neoclassical relationship between economic growth and tourism are contradictory,this study has been placed to show that the tourism sector uses data from 2008-2019 to play a role in economic growth,using the Mongolian context.The aim is to determine the long-term and short-term relationships between economic growth,tourism receipts and government spending on tourism.The study uses econometric techniques such as Augmented Dickey Fuller(ADF)for unit roots and cointegration of Johansen.Johansen cointegration results show a positive and statistically significant relationship between the receipts from tourism and economic growth.On the other hand,the test showed negative and significant correlation between tourism and economic development government expenditure.Short-term relationships and Long-run display only significant revenue from tourism,and are positively linked to growth.The coefficient of velocity change was not high when there is a state of disequilibrium.In addition to improving current awareness,the findings also proposed to policy makers to further boost and maintain the tourism sector to generate higher economic growth.