TOURISM AND ECONOMIC GROWTH NEXUS IN NIGERIA: IMPLICATION FOR ECONOMIC DIVERSIFICATION
Abstract
This study aims at investigating the impact of tourism sector on economic growth in Nigeria. Secondary data on gross domestic product; gross fixed capital formation; broad money; total labor force; and international tourism receipts spanning the period 1990 and 2025 were adopted in the study. Applying ADF unit root test and autoregressive distributed lag (ARDL) model technique, the results revealed that the long-run coefficient of gross fixed capital formation indicated a positive impact on economic growth, broad money stock and economic growth depicted positive significant relationship, the long-run coefficient of tourism receipt in Nigeria portrayed a negative relationship with economic growth, and labour force showed a positive significant impact on economic growth in the long run. The study concludes that for the achievement of a long run relationship between tourism sector and economic growth in Nigeria, a synergy of all levels of government must be achieved. The government should allocate appropriate budget to develop the infrastructure and recreational points in the areas rich in natural and cultural aspects which will attract domestic and foreign nationals.
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