Authors : Soneya Rahman; Janifar Rahman; Khalid Imran; Ahsan Habib

Volume/Issue : Volume 10 - 2025, Issue 1 - January

Google Scholar : https://tinyurl.com/588rwhvw

Scribd : https://tinyurl.com/537xm9sn

DOI : https://doi.org/10.5281/zenodo.14848291

Abstract : South Asia, characterized by its economic diversity and development potential, relies heavily on tourism, foreign direct investment (FDI), and renewable energy consumption as key economic growth drivers. This study examines the complex interrelationships among these factors and their combined influence on the region's economic progress, addressing notable gaps in existing literature. Utilizing panel data from the World Development Indicators (WDI) database (1995–2020) and employing the Auto Regressive Distributed Lag (ARDL) model, both short-term and long-term dynamics were explored. Key variables analyzed include GDP, international tourism arrivals, FDI inflows, renewable energy consumption, labor force participation, and capital formation. Results reveal that in the long run, FDI, labor force participation, and tourism significantly contribute to economic growth, while renewable energy consumption surprisingly exhibits a negative impact, highlighting challenges in harmonizing sustainable energy practices with economic advancement. In the short term, however, the effects of these factors are relatively minor. This study enriches the existing knowledge base by showcasing the interconnected roles of tourism, FDI, renewable energy, and economic development. It also provides practical strategies, including fostering FDI-friendly environments, encouraging sustainable tourism, upgrading renewable energy infrastructure, and promoting regional energy security through collaboration. These findings offer policymakers and stakeholders evidence- based insights to design strategies aimed at sustainable economic development in South Asia, addressing a critical gap in the research domain.

Keywords : Tourism, Foreign Direct Investment, Renewable Energy Consumption, Economic Development, South Asia.

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