The Effect of Economic Policy Uncertainty on the International Tourism Revenue of Developing Countries (Including Iran)

اقتصاد و توسعه منطقه ای

Volume 31, Autumn&Winter2025 - Serial Number 28, February 2025

Document Type: Original Article

DOI: 10.22067/erd.2025.88034.1234

Authors

behnam elyaspour¹; Roohollah Babaki^{* 2}; narges sanjari konarsandal³

¹Assistant Professor of Economics, University of Bojnord

²University of Bojnord

³M.A of Economics, University of Bojnord

Abstract

The expansion of the tourism industry as an industry that interacts with different fields, such as economy, culture, environment, agriculture and services, is very important and the experiences of other regions of the world have shown that the development of the tourism industry in each region has caused the economic and social development of that region. In fact, the tourism industry is the largest and most diverse industry in the world. The impact of tourism on the increase in employment and foreign exchange earnings, the prosperity of domestic industries, the expansion of international cooperation has caused the attitude of the countries of the world towards its border to change and find an important place in government policies. Therefore, considering the importance of the subject, the main goal of the current research is to investigate the impact of economic policy uncertainty, economic growth and exchange rate on the income of inward foreign tourists in developing countries (including Iran) during the period of 2005-2020. For this purpose, the Pooled Mean Group (PMG) method has been used. The results of this research show that economic policy uncertainty has a negative and significant effect and on the other hand, economic growth and exchange rate have positive and significant effects on tourism in developing countries. Therefore, in order to develop tourism, the country's economic policymakers are advised to: 1- Avoid their irregular and discretionary policies; 2- Make greater economic growth the goal of their decisions and spend national income on granting facilities, building and developing tourism infrastructure; 3- Avoid suppressing the exchange rate and leave the exchange rate determination to the market.

Keywords

Tourism; Economic Policy Uncertainty; Economic Growth; Exchange Rate; Pooled Mean Group (PMG)

References